Catalyst Health Solutions, Inc. (CHSI) — This pharmacy benefit management company double-topped at over $35 last September, and by early October was trading under $16.
On June 9 at $23.50 the COD said, “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 MACD issued a buy signal, and on Friday 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.” And on July 1, “On Friday CHSI broke through the critical resistance at $24, and so our initial objective of $30 is confirmed.”
CHSI has fulfilled its technical requirements to meet our trading objective of $30. Buy on weakness to the breakout level of $24.
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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.
