ANALYSIS: lh *update*

Lab Corp does blood tests, hiv tests, urine tests, dna tests, basically every test you can think of that's used at a hospital. Here's the chart.



If you were to look further back on LH, you'll notice that it has a history of making large moves after consolidating for a certain period of time. As you can see, until mid June, LH has traded in a very narrow range. Yes, the move was made almost a month ago, but I see it as a move that should last longer than its previous moves largely for one technical reason; its move upwards has been much more gradual. Its past moves were huge moves that lasted at most one month, but each time the rise was meteoric.

Again though, following my momentum strategy, the main reason I'm in this stock is because it is trending well in an industry that is also trending well in the last couple of months, the medical laboratories and research industry.

A word of caution: there was previously a case pending on a patent that Lab Corp was infringing on. It was thrown out by the Supreme Court in favor of the other company in late June. The news stopped LH at its 52-week-high, dropping it back to the consolidation resistance where it found support (resistance turns into support) on around June 28th. After people began to realize that the case would not hurt the company, the stock has begun to climb back towards the high set before the case was thrown out ( a bullish sign). Even still, with bio companies, it's always important to keep up on company lawsuits, patents, etc.

Update: LH is looking more and more like an ascending triangle with declining volume to strengthen the formation. This is a bullish chart pattern, one that you should trade on the breakout above the resistance line.