Do You Know Your ABCs? HFT Profit Thinks This Company May Be Singing

AmerisourceBergen is one of the largest pharmaceutical services companies serving North America.  They provide drug distribution and services that reduce costs and improve outcomes for the end users.

Boasting over $80 billion in annual revenue, AmerisourceBergen also employs approximately 11,000 people with their HQ in Valley Forge, PA.

They are ranked #27 on the Fortune 500 list.  Which means their may be some fundamentalist action on the stock as well

They recently reaffirms their EPS guidance of 3.06-3.16 per share on a 13% rise in revenue, along with a healthy dividend of .21 cents per share.   How did the street take the news?  Well, lets just say that things are looking up.

Take a look at the 1 Year chart below.

ABC Feb 8th 1 Year

It looks like it began its run in Sept, broke through resistance, tested support and then went on to new all time highs.  Given the recent good news and the stocks insistence on staying above $40, we think this stock has a good chance of continuing its upswing.

Now lets look at the 3 Month chart:

Feb 8th 3 Month-1

You’ll see some nice support at both 44 and 45.  This means that a stop exit of 43.50 will get you almost 2-1 before it breaks 50 the first time, so you could play the 3 month for half your position at 2-1,  and the 1 year for the other half at anything from 3-1 to 20-1.

For those of you who prefer the down side, you could range trade a break through the yellow trend line short, covering half your position at 45 and then 44 while regrouping at the top of the range (depending where it breaks through at of course) but you probably won’t see any real money like you would on the long side unless the break takes you below $37.00 per share (then their could be a $10-$12 break on the short side)

 

 Remember,  trading is just like real life.   There is no faster way to go broke than chasing fast easy money.

Please note:  There is no advice given in this article.  Only analysis.  Please do your own due diligence before entering any trade.   HFT Profit does not own any of the investments listed on this site, nor do they endorse any trading decisions or solicitations.

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