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Express Scripts (ESRX), rose out of a consolidation box only to fall back into that same zone and consolidate further. With the Marabozu candle Friday, it is now pressing against the top with a relative strength index (RSI) that is rising and through the mid line and a MACD that is turning higher and crossed up. These support more upside. There is resistance higher at the top of the box at 63.15 and then 63.65 followed by 65 and 66.50 before the previous high at 67.66. Support lower comes at 61.90 and 60.80 followed by 59.70 and 58.40, with a measured move lower to 57.50.
Trade Idea 1: Enter long on a move over 63.40 with a stop at 62.40.
Trade Idea 2: Buy the November 62.5 calls (offered at $2.19 late Friday) on the same trigger.
Trade Idea 3: Buy the November 62.5/67.5 call spread ($1.77) on the same trigger.
Trade Idea 4: Buy the October/November 65 call calendar ($90 cents).
Trade Idea 5: Buy the November 62.5/65 call spread and sell the October 65 call ($1.00).
By Greg Harmon of Dragonfly Capital
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