Registered User
Joined: 12/2/2004
Posts: 1,775
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On technical side MDRX currently is forming a nice setup, now in about a 7 week cup or w shaped base. Note the volume pickup last few days as right side is being built. Closest resistance 10'ish area, then the 200-day above that. Clear those and I think a test of 16 resistance improves greatly. IMO a move/close over 10 is a buy signal or add on, and then another with move over 200-day. MDRX is one of the stocks that supposedly should benefit greatly form the stimulus package. The way I read it private physicians (non hospital ) should each receive approximately $10k-12k to help make the move to going all digital with records/prescriptions. If enough docs make the digital move then the thinking is that it would significantly help lower medical costs in this country, and MDRX is a major player in that software market. Fundamentally the stock is highly rated in its own industry group which also is highly rated (5th out of 197 groups). Watchlist worthy imo. SXCI is another highly rated stock in that group that's looking good on its pullback, but watch out as it's thinly traded.
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Registered User
Joined: 1/3/2007
Posts: 43
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MDRX is a nice one
a lot of UNwin battle Candles are formed at bottom, which is W shape.
i wait and see how are they act, when they pull back
good job, add into my BUYWATCH LIST.
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Registered User
Joined: 1/30/2009
Posts: 267
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Also, it's been in a nice little uptrend since October. It looks like it came back to the approxomate half way point of the upmove then took off again. It's on my watchlist now also.
Thanks.
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Registered User
Joined: 12/7/2004
Posts: 393
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Most every day they report adding more physician groups as clients.
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Fpetry, good find I also like this stock. Zero Debt to equity and Hight Institutional support make this attractive. Price is trading in a tight range right now and I like the chances of a break to the up side soon. The volume profile is increasing and supporting a potential rally.
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Registered User
Joined: 12/2/2004
Posts: 1,775
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Appreciate the feedback guys. In my post I stated that physicians should receive about $10k each if they choose to implement the digital upgrades, but that's just for the first year. The docs would actually end receiving approx. $50k over a five year period. Sounds like a pretty good incentive to me.
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Registered User
Joined: 1/30/2009
Posts: 267
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Still looking very strong. 2 ticks from resistance.
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Registered User
Joined: 12/2/2004
Posts: 1,775
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QUOTE (hiromj) Still looking very strong. 2 ticks from resistance.
Yep. I'll add to postition if 10.30 rings, that would be a good signal imo. Price has had enough time now for a legit breakout soon, so if a solid break above 10 comes and there's no fast follow thru my patience won't be stretched...will move up stop rather tight just below 10.
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Registered User
Joined: 12/2/2004
Posts: 1,775
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MDRX just hit with a sell by Deutsche Bank, wouldn't you know it. They say the stimulus package angle is overdone, lowering price target to 7. You just never know how significant this downgrade is. Anyway, pre market showing down 5%, 9.50.
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Registered User
Joined: 12/2/2004
Posts: 1,775
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Just sold half of my starter position pre market at 9.51.
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Registered User
Joined: 1/30/2009
Posts: 267
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Maybe time to buy a few puts.
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Fpetry, Price is going down to test the bottom of the channel but is meeting up with support in the low $8's. I expect this to bounce soon to test for a break out very soon. I do not know if you still have an interest in this one, but I have been keeping an eye on it..
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Registered User
Joined: 12/2/2004
Posts: 1,775
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QUOTE (Apsll)
Fpetry, Price is going down to test the bottom of the channel but is meeting up with support in the low $8's. I expect this to bounce soon to test for a break out very soon. I do not know if you still have an interest in this one, but I have been keeping an eye on it..
I'm completely out of it Apsll. Saw where another name in the group got hammered last week, ATHN. SXCI in group down also on huge volume. MDRX holding up better and down volume not as bad relatively as other two, but it is below the 50-day now and would not be surprised to see it down a lot more near future. But yes, keeping it on my watch list for possible reentry if it sets up again, particularly if clears 10.20. Would be encouraging if that 7.7-8'ish area holds.
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Registered User
Joined: 1/30/2009
Posts: 267
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I have been watching this one also. It has been playing the channel very nicely. A breakout could be big.
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Registered User
Joined: 1/30/2009
Posts: 267
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Amost resembles the RSH chart formation.
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Registered User
Joined: 12/2/2004
Posts: 1,775
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The recent Wal Mart news that it's entering the sector does not exactly look good for MDRX. Volume to downside yesterday was pronounced as news was digested. A move below recent support and I think this once promising looking long could quickly become an excellent short pick. A lot of open air all the way down to below 5.
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Registered User
Joined: 12/2/2004
Posts: 1,775
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As they say, price never lies. Not only did MDRX not fall below its support/channel, it rose yesterday right back to resistance on strongest green volume in three months. Teasing again for breakout and looks stronger this time. A close above resistance would likely also be a close above nearby major 200-day average which would definitely be additional buy signal. It that doesn't happen soon then an excellent short pick back down to at least bottom of channel again.
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Registered User
Joined: 4/28/2005
Posts: 59
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I have been watching this since fprety brough it up. It did fail to break out the top of the channel and dropped to test support around$7.60 or so then began a rise back up to resistance close to $10.20 and as fpetry stated the 200 MA.
Didnt someone once mention something about testing a support or resistance level on the third time? I cant remember who it was or what it meant when the third test was done. Anyone remember if that was a good thing or a bad thing?
Also hiromj, what is a RSH chart if you dont mind my asking?
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Registered User
Joined: 1/30/2009
Posts: 267
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I papertraded this one,unfortunately. Got in on March 9 @ 7.93 and now it's at 10.40. Keeping smart stops. If it falls, I still have my 7.5 put (that will probably expire worthless). Not a bad return for two weeks.
RSH (radioshack) just happene to be a chart I was looking at then. It had a similar bouncing pattern from Dec to Feb then broke out hard (gapped) to the downside.
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