Catamaran Corp (NASDAQ: CTRX)

Catamaran Corporation provides pharmacy benefit management (PBM) services and healthcare information technology (HCIT) solutions to the healthcare benefits management industry in North America. The company operates in two segments: PBM and HCIT. Its PBM services include electronic point-of-sale pharmacy claims management, retail pharmacy network management, mail and specialty pharmacy claims management, Medicare Part D services, benefit design consultation, preferred drug management programs, drug review and analysis, consulting services, data access, and reporting and information analysis. The company offers RxCLAIM, an online transaction processing system to provide online adjudication of third-party prescription drug claims at the point of service, as well as payment and billing support and real-time functionality for updating benefit, price, member, provider, and drug details. It also provides RxBUILDER, a Web-based interface for formulary creation and maintenance; RxPORTAL, which allows customers to interact with the patieny’s formulary and drug history; and RxAUTH, a prior authorization (PA) management solution for automating PA process.
Please take a look at the 1-year chart of CTRX (Catamaran Corporation) below with my added notations:
CTRX has been holding a very important level of support at $46 (lavender) for almost the entire duration of the 1-year chart, and you can see that $46 had also been a resistance prior to that back in August. No matter what the market has or has not done since September, the stock has held that $46 level. CTRX is approaching $46 again and that should provide another bounce higher, but if the overall market sells-off, CTRX could break that support.
The Tale of the Tape: CTRX has a very strong level of support at $46. A trader could enter a long position at $46 with a stop placed under the level. If the stock were to break below the support, a short position would be recommended instead.
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