MedAssets Charts: In the Sweet Spot

By L.A. Little of tatoday.com, author of Trade Like the Little Guy.

MedAssets(MDAS Quote) trades on Nasdaq and in the health care information services sector. The company essentially sells software to hospitals and health-related organizations to handle health care reimbursements and many of the back-office operations.

With the Obama administration's emphasis on streamlining the health care system, it seems that MedAssets may be in the sweet spot right now. Their charts reflect that view. Starting with the monthly chart, we can see a picture perfect rise from the lows. In all the stocks that we have looked at over the past couple of weeks, none of them compare with the strength exhibited in this long-term chart.

For starters, look at the volume expansion on a monthly basis as the 2008 swing points were removed. Up volume was huge both on the run up to the swing points and then on the break of them. When you are looking to buy a stock, this is an ideal long-term chart. Trend on the long term is confirmed bullish.

Also note how the all-time highs are being attacked with volume. This is extremely bullish behavior especially in a market like the current one in which the lack of volume on price rises occurs daily.