CERN closes lower for the 2nd day in a row
Cerner Corporation (CERN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CERN ended the month 1.31% higher at 69.45 after tanking $1.81 (-2.54%) today, notably underperforming the Nasdaq 100 (1.78%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CERN as at Jul 31, 2020):
Friday's trading range has been $2.70 (3.8%), that's far above the last trading month's daily average range of $1.49. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CERN.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Tuesday, CERN actually gained 3.19% on the following trading day.
After trading down to 68.87 earlier during the day, Cerner bounced off the key technical support level at 68.98 (S1). The failure to close below the support could increase that levels significance as support going forward. The stock closed below the 200-day moving average at 69.95 for the first time since July 13th.
Though the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to July's low at 68.58, downside momentum could speed up should the market mark new lows for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 50" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Cerner. Out of 81 times, CERN closed higher 59.26% 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 61.73% with an average market move of 1.47%.