Magellan is a managed healthcare services company, which through fiscal 2005 has operated in the managed behavioral healthcare arena. Magellan, directly and through its subsidiaries coordinates and manages the delivery of behavioral healthcare treatment services that are provided through its contracted network of third-party treatment providers, which includes psychiatrists, psychologists, other behavioral health professionals, psychiatric hospitals, general medical facilities with psychiatric beds, residential treatment centers and other treatment facilities. (Source: Bigcharts)

What a great weekend it has been for finding momentum plays. I am very excited about this play on all time frames. Not only do the technicals look great on the one-year weekly chart below, but on the 10-day hourly as well.

So, why on earth would I bother to mention the 10-day hourly part?

Well, this just proves what an opportune time it is to jump into MGLN. In most of my plays there may be a brief period of waiting before the stock begins to really move. Not in this case. I fully expect to see Magellan’s stock to appreciate in price right from the very start. This means that Monday morning you should be warming up that trigger finger of yours to buy shares at the opening bell.

Our Recommendation: Buy shares of MGLN at or near $44.90 and place the usual 5% stop loss to reduce any downside risk.