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Continucare Charts: Long-Term Opportunity

It's not a household name, nor glamorous, but Continucare is presenting an excellent opportunity to make money on a longer-term basis.

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

Continucare

(CNU)

, a U.S. provider of primary care physician services on an outpatient basis, has seen continued top- and bottom-line growth in the United States. It is

confirmed bullish

on all three time frames.

Continucare provides medical services to patients through physicians, nurse practitioners, and physician's assistants, and as we all know, the current and expected growth in this sector is significant.

There's nothing wrong with this stock, expect that I don't yet hold enough of it in my portfolio.

Here's the long-term view:

On it, we can see a couple of salient points. The first is that we are confirmed bullish for this time frame. Secondly, we have set up a confirmed AB=CD target that should take us high enough to carve out the next resistance area for this higher floor that CNU has conquered. From there, the basing and building strength for the next rise would be desirable.

Switching to the intermediate term, we can see that volume has confirmed here as well, and that this week a small retrace is occurring.

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The ideal scenario, for those of us wanting to add or establish new positions, is for the retrace to come back further to the $3.75 to $4 range. That would be where to strike this stock with the idea of further purchases as low as the $3.25 area.

On the shortest time frame that I study from a swing trading perspective, we see the excellent price/volume characteristics as well.

I know that CNU isn't exactly a household name, nor is it that glamorous. It is, however, presenting an excellent opportunity to make money on a longer-term basis and that is, after all, what we are looking for. Right?

So join me in a trade here if you see it the same way and, until next time, keep trading the charts!

At the time of publication, Little was long Continucare

.

L.A. Little is an author, professional trader and money manager who writes daily on

tatoday.com

, a free educational site for traders and investors. He has been featured in Stocks & Commodities magazine and is the author of

Trade Like The Little Guy

.