CERN closes higher for the 4th day in a row
Cerner Corporation (CERN) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, CERN finished Thursday at 69.91 gaining $0.42 (0.6%), slightly underperforming the Nasdaq 100 (0.61%) ahead of tomorrow's Independence Day OBS market holiday. Trading $0.58 higher after the open, Cerner was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 23rd, CERN lost -3.38% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CERN as at Jul 02, 2020):
Thursday's trading range has been $0.84 (1.2%), that's far below the last trading month's daily average range of $2.05. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CERN.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Shooting Star which are both known as bearish patterns.
The share managed to close back above the 200-day moving average at 69.59 for the first time since June 23rd.
While the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Cerner. Out of 223 times, CERN closed higher 60.09% 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 56.50% with an average market move of 1.26%.