Simple Trading Stalk Idea: MDRX 14 February 2014

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Like other stalk candidates we suggest, MDRX is positively structured on higher timeframes.  We especially like this setup on the daily chart because the price action is forming a wedge which generally resolves in the direction of the trend coming into the wedge’s formation and does so fairly dramatically.  Further, there’s a “go, no go” rising trendline which offers a clear line in the sand for stop purposes.  Finally, MDRX is already resuming an uptrend after closing a previous gap to the upside.  We would stalk the stock for long entries as long as price is inside the wedge.  If a long is taken, we would use a break of the rising trendline or the recent swing low at $15.51 for stop loss placement.

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