WellCare Health Plans : Perfect timing to aim a technical rebound
December 05, 2012 at 02:21 pm
By
Entry price | Target | Stop-loss | Potential |
---|
US$47.23 |
US$0 |
US$44.6 |
-100% |
---|
The USD 45.9 support area, currently tested, might facilitate a technical rebound. The company’s fundamentals could validate this scenario.
According to Surperformance rating, the company is an opportunity for a trading strategy. Indeed, it is a good compromise between its value and its visibility.
Technically, the security fell sharply for several weeks. This fall has lead WellCare Health Plans towards the USD 45.9 support area which could become useful as a stepping stone for a technical rebound. The first target of this bullish trend is the USD 49.9 resistance and the the USD 55.25. Even though moving averages are still in a bearish trend, the oversold situation could encourage a renewed interest in WellCare Health Plans.
Therefore, the proximity of the USD 45.9 support is an opportunity to take a long position in WellCare Health Plans. The first goal is a return in the USD 49.9 resistance area, that is a potential of 5.7%. In fact, the security has to cross this area in order to re-establish a bullish trend in the mid term. A stop loss order can be placed under the support currently tested.
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