eResearch Technology (ERES)

Company

"Based in Philadelphia, PA, ERT (eResearchTechnology, Inc.) is a leading provider of centralized ECG, ePRO, and other services to the biopharmaceutical, medical device, and related industries. ERT products and services are enabled by EXPERT®, the Company's robust, secure, and validated clinical research workflow-processing system that powers centralized electronic data collection, data management, and information exchange." (company website)

eres(4-1)
ERES 4-month chart
eres(4-1)_1yr
ERES 1-year chart

Buy

After earnings were reported at the end of July, ERES took a big tumble, but has climbed steadily since then, albeit with pretty dramatic swings. Since that time, the 50-day moving average crossed above the 200-day, and both averages are now rising.

On the P&F chart, ERES made a double-top breakout in April, and at current prices has broken the resistance line.

I do worry a bit that the retracement from the latest peak may not be over. On the other hand, the slope of the uptrend has steepened since August; time will tell.

  • Percentage price oscillator (PPO) — crossed above the signal line again after recent correction
  • Volume — recent big sell-off was probably profit taking after a big price jump

Based on technical analysis, MarketEdge calls ERES a "strong buy" in a "strong upward trend."

Sell

gain Bottom line
0%

After solid advances last Friday, the Columbus Day market pretty much stalled, so I cashed out. ERES appears to be faltering at the resistance level; despite several consecutive up-days, the price advances have been almost trivial. I got out with just enough profit to cover trading costs, so this is a complete break-even.