Express Scripts (ESRX) has been a solid performer for years, but has lost around 50% since 2015. I have it on my radar as a contrarian value play, but even after the 50% haircut, the chart has now formed a bearish head and shoulders formation and also a bearish descending triangle.
I was originally looking at ESRX as a rebound value play, but based solely on the chart it's actually also a potential short if the key support level doesn't hold. The support level to watch is 65, which is both the neckline of the head + shoulders and also the bottom of the descending triangle. To go short it would have to break through 65 and then fail a re-test of 65 (which once broken would be resistance).
Anyway, I always considered ESRX a high quality company in a good sector, so would be reluctant to suggest a short even if the chart indicates it should be shorted. Better off shorting crappy companies, but just thought I'd mention it.
