CERN runs into sellers again around 73.03
Cerner Corporation (CERN) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
CERN ended Monday at 72.59 losing $0.31 (-0.43%), underperforming the Nasdaq 100 (0.45%). Trading up to $0.46 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CERN as at Jun 01, 2020):
Monday's trading range has been $1.06 (1.46%), that's below the last trading month's daily average range of $1.78. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CERN.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on March 17th, CERN actually lost -4.01% on the following trading day.
After having been unable to move above 72.98 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 73.03.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 67.94.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Trading close to April's high at 74.88 we might see further upside momentum if potential buy stops at the level get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Cerner. Out of 202 times, CERN closed higher 53.96% of the time on the next trading day after the market condition occurred.