WLP data by YCharts WellPoint is the largest publicly traded commercial health benefits company in terms of membership in the United States. Wellpoint trades an average of 1.8 million shares per day with a marketcap of $24 billion. On Monday, WellPoint climbed to a new 52 week high and is up over 15% in the last year. During the last month alone, shareholders witnessed shares climb in value over 6.5%. As strong as WellPoint has been during the last few months, the chart remains impressive for the bullish thesis. Monday's break above the 52-week high is based on a trading range started over a month ago. I see this type of price action in stocks that are moving towards a newer and higher price range. We can all agree the few short-sellers of WellPoint aren't feeling well lately, and I wouldn't expect many will join the few that made the mistake of shorting. Currently, short interest is 1.7% of the float, a relatively small amount.
Similar to U.S. Bancorp's chart, trend followers will hold a long position in WellPoint's chart until the pattern fails. It doesn't appear a breakdown is imminent, but I prefer not to chase stocks. If you're interested in WellPoint, I recommend watching and waiting for a buying dip near $79 or selling Put options as a hedging tool. At the time of publication the author had no position in any of the stocks mentioned.Follow @RobertWeinsteinThis article was written by an independent contributor, separate from TheStreet's regular news coverage.