Catalyst Health Solutions (CHSI) — This pharmacy benefit management company double-topped at over $35 last September. And, by early October, CHSI was trading under $16.
On June 9, at $23.50, I wrote, “Since then, however, CHSI has consolidated around its 50-day moving average at just under $22, and appears to be building upside volume.
“A week ago, its Moving Average Convergence/Divergence (MACD) issued a buy signal, and on Friday [June 5], it closed above its 200-day moving average. Then, yesterday, it followed with a nice confirming gain.
“The next step for this stock is to close over the triple-top at $24. If it can achieve that, look for a trading run to about $30.”
On Friday, June 26, CHSI broke through the critical resistance at $24, so our initial objective of $30 is confirmed.
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Sam Collins is a registered, fee-based portfolio manager who may be contacted at samailc@cox.net. You can also check out an archive of some of his most recent market outlooks.
