CERN breaks back above 20-day moving average
Cerner Corporation (CERN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
CERN finished Wednesday at 72.42 gaining $0.72 (1.0%), notably outperforming the Nasdaq 100 (-1.67%). 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 Sep 16, 2020):
Wednesday's trading range has been $1.51 (2.09%), that's slightly below the last trading month's daily average range of $1.57. 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 higher than usual for CERN. Prices continued to consolidate within a tight trading range between 71.45 and 73.57 where it has been caught now for the last three trading days.
Four candlestick patterns are matching today's price action, the Bearish Hikkake Pattern, the Gravestone Doji and the Northern Doji which are known as bearish patterns and one neutral pattern, the Doji. The last time a Gravestone Doji showed up on May 11th, CERN lost -3.24% on the following trading day.
The share managed to close back above the 20-day moving average at 72.17 for the first time since September 3rd. Unable to break through the key technical resistance level at 73.45 (R1), Cerner closed below it after spiking up to 73.57 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. Its common bearish interpretation has been confirmed for Cerner. Out of 74 times, CERN closed lower 56.76% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 58.11% with an average market move of -0.42%.