Express Scripts Approaching Important Moving Averages

Published on Wednesday, 25 August 2010 06:32 Written by Christian Paolinetti

New York, August 25th (TradersHuddle.com) - Shares of Express Scripts, Inc. (NASDAQ:ESRX) closed the trading session at $45.02 near its 50 day and 200 day moving averages currently set at $46.83 and $47.04 respectively. Express Scripts price action is below these important levels, which makes the stock difficult to buy, as there will certainly be resistance as it approaches these important moving averages.

Express Scripts, Inc. (NASDAQ:ESRX) is a full service pharmacy benefit management and specialty managed care company. The Company serves managed care organizations, insurance carriers, third party administrators, employers, and union-sponsored benefit plans.

Latest price action range, defined by a peaks and troughs algorithm placed calculated support at $44.10 and calculated resistance at $46.72. These levels should be watched by traders, as they provide insight into the latest price dynamics in Express Scripts shares.

Traders should evaluate their options if they want to establish a position on Express Scripts given the heavy resistance expected near the 50 and 200 day moving averages. A trade might be evident as the stock manages to break these moving averages, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will closely evaluate are the ones defined by the peak and troughs algorithm that provides great price level reference points.