Trading ABC’s

• Posted by Greg Harmon
• on May 15th, 2014

Looking for a good stock set up or if you are in fear mode a ‘place to hide out’ until the dust settles? Well AmerisourceBergen, $ABC, looks good on multiple timeframes. The weekly longer term picture shows that the price is moving higher out of the pullback and over the 20 week SMA. The RSI is rising and moving towards the bullish range while the MACD is also rising and nearing a bullish cross up. The move above the channel triggers a buy signal and the longer view shows the potential to be near 100 if the AB=CD plays out.

Zooming in on the daily timeframe also looks good. The RSI and MACD are rising in this timeframe as well but the 100 day SMA seems to be providing some short term resistance. A move over that would confirm more upside with resistance at 69.15 and 71.50.

I am hitting the road now, but will be monitoring this and may enter tomorrow.

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