Express Scripts Holding Co. (ESRX) got a thumbs up from our own Jim Cramer Tuesday night in the "Lightning Round" on Mad Money. Okay. Jim likes the fundamentals of the company. What about the technical perspective? Let's check out the charts and indicators to see if things are in good shape or whether we may need to change our prescription.
In the daily bar chart of ESRX, below, we can see that prices have been in an uptrend the past year interrupted by a large sideways consolidation pattern from January to early August. Prices are above the rising 50-day moving average line and the bullish 200-day moving average line. Successful tests of the 200-day line can be seen in April, May and the beginning of August.
The daily On-Balance-Volume (OBV) line shows a positive bias with a new rise from early August. A rising OBV line happens when trading volume is heavier on days when the stock closes higher -- a sign that buyers are being more aggressive.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has rolled over to a take profits sell signal.
In the weekly bar chart of ESRX, below, we can see that prices have rallied to break the mid-2015 highs. Prices are above the rising 40-week moving average line.
The weekly OBV line has been strong since July of 2017 and its new high helps to confirm and support the new price highs. The weekly MACD oscillator is in a bullish configuration.
In this Point and Figure chart of ESRX, below, we can see a major long-term upside price target of $141.66 being projected. A decline to $91.77 would weaken the picture.
Bottom-line strategy: Investors could maintain longs in ESRX. Traders could go long ESRX at current levels risking a close below $88, or below the 50-day moving average line. The upside price targets are $100, $125 and $141.