Monday, July 29, 2013

HMS Holdings Corp. (NASDAQ: HMSY)

HMS Holdings Corp. provides cost containment services to government and private healthcare payers and sponsors. The company's services include co-ordination of benefits and program integrity services. Its co-ordination of benefits services provide cost avoidance services that offer validated insurance coverage information, which is used by government-sponsored payers to co-ordinate benefits for incoming claims; and program integrity services identify improper payments on a pre-payment and post-payment basis, identify and recover overpayments, detect and prevent fraud and abuse, and identify process improvements. It serves state Medicaid agencies; the centers for Medicare and Medicaid services; commercial health plans, including Medicaid managed care, Medicare Advantage, and group health lines of business; government and private employers; Pharmacy Benefit Managers; child support agencies; the Veterans Health Administration; and other healthcare payers and sponsors.
Please take a look at the 1-year chart of HMSY (HMS Holdings Corp.) below with my added notations:
1-year chart of HMSY (HMS Holdings Corp.) HMSY has a very important price level at $26 (navy) that has been both support and resistance over the last (6) months. The stock also has a clear lower level of support at $22 (blue). In between those levels you can see that $24 (red) is not an uncommon area of support or resistance either. So, in addition to showing clear levels of support/resistance, HMSY is also showing you that it tends to react to each $2 increment.
The Tale of the Tape: HMSY is currently trading between its $24 and $26 levels. A long position could be entered at $24 or on a break above $26 with a stop below the level of entry. If HMSY breaks below $24, another long play could be made at $22. If you are looking for a short trade instead, a break below $24 would provide you with that opportunity.
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