CERN dominated by bulls lifting the market higher throughout the day
Cerner Corporation (CERN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
CERN finished Thursday at 61.04 gaining $3.00 (5.17%), underperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 59.93, the market confirmed its breakout through the previous session high after trading up to $1.85 above it intraday.
Daily Candlestick Chart (CERN as at Mar 26, 2020):
Thursday's trading range has been $3.96 (6.85%), that's slightly above the last trading month's daily average range of $3.89. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for CERN.
Even with a weak opening Cerner managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Belt-hold and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on March 6th, CERN actually lost -4.23% on the following trading day.
Prices are trading close to the key technical resistance level at 62.55 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 62.55 where further buy stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Belt-hold" stand out. Its common bullish interpretation has been confirmed for Cerner. Out of 7 times, CERN closed higher 85.71% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 71.43% with an average market move of 2.11%.