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ABC Flashing Buy Signal

AmerisourceBergen is breaking out of a triple-top

   

AmerisourceBergen Corp. (NYSE: ABC) — This pharmaceuticals service company is one of the best stock picks that provides drug distribution and related services has been in a steady bull channel supported by the 50-day moving average for over a year. The stock is up over 80% since its low in March 2009, and now it appears to be getting stronger with the stochastic flashing a buy signal last week just after it broke from a triple-top.

S&P says that ABC should benefit from health-care reform and “likely will gain share in the competitive drug distribution market over the long term.”

Earnings growth of over 32% has made ABC an institutional favorite. TheStreet.com rates it a “buy,” and S&P maintains a “four-star buy” and recently raised its target to $38 from $36.

Following a consolidation within the familiar outlines of a “cup,” the triple-top breakout at $33.50 yields a trading target of over $39.

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dmo chart key11 ABC Flashing Buy Signal

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Article printed from InvestorPlace Media, http://investorplace.com/2011/01/trade-of-the-day-amerisourcebergen-corp-abc/.

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