Quest Diagnostics (DGX) has been on a roller coaster ride for the past several months, but lately it has shown some strong bullish qualities. After a deep nose-dive at the end of 2013, the stock bottomed out; it has recently recovered to the point that it may exceed the old highs.
Looking at the daily chart below, we see the move over resistance on high stock turnover. Tuesday’s move was strong on substantially higher volume, signaling the biggest turnover we’ve seen in some time. We added the name to our portfolio today, taking advantage of a move upward in momentum. In fact, options trading volume was very active, particularly for June and November strikes.
