Molina Healthcare, Inc. provides Medicaid-related solutions to meet the health care needs of low-income families and individuals; and to assist state agencies in their administration of the Medicaid program. The Health Plans segment operates health plans in 11 states. The Molina Medicaid Solutions segment provides design, development, implementation; business process outsourcing; hosting services; and information technology development and administrative services to Medicaid agencies in Idaho, Louisiana, Maine, New Jersey, and West Virginia, as well as the U.S. Virgin Islands; and drug rebate administration services in Florida. The Other segment provides behavioral health and social services.
Take a look at the 1-year chart of Coeur (NYSE: MOH) below with my added notations:
Over the past seven months, MOH has formed a key level of resistance to watch at the $60 (blue) level. The stock has tested that mark several times since July, and it had also been tested as support back in April. A strong close above that $60 level should lead to higher prices.
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The Tale of the Tape: MOH has a key level of resistance at $60. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $60.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT
Follow me on Twitter: @cmtstockcoach