Thursday, May 27, 2010

Medco Health Solutions Inc. (MHS) - Support Holds




After receiving several emails over the past few weeks regarding Medco Health Solutions Inc. (MHS) I decided to finally look at the chart and discovered that this stock is at a low risk buying area.

Above is a weekly chart of MHS over the last 5 years and as you can see this stock is in a clear uptrend. What I like about MHS is that it is now sitting on a significant support level which was once a previous high, that level is the 54 area. This type of support is very similar to the support level from 2008 which as you can see held quite well.

In the lower panel is the stochastic oscillator which  is in the buy zone. You can see that just about every time this oscillator turned up from an oversold level, MHS has rallied. 

This isn't a stock that I personally trade or follow, but for those who have shown an interest in Medco Health Solutions Inc. (MHS) this would be the place to buy it with a protective stop below support. The upside objective would be a test of this year's high.

1 comment:

Freddy said...

Thanks for the info. I'll wait for the confirmation, if its price goes up with high volume, the I'll put it on my portfolio

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