CI closes below its opening price unable to hold early session gains
CIGNA Corp. (CI) Technical Analysis Report for Oct 12, 2018
CI ended the week -4.0% lower at 207.09 after gaining $1.09 (0.53%) today, underperforming the S&P 500 (1.42%). Trading $2.08 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CI as at Oct 12, 2018):
Friday's trading range has been $3.85 (1.85%), that's slightly below the last trading month's daily average range of $4.10. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CI.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
CIGNA Corp. managed to break above the 20-day moving average at 206.73 today. When this moving average was crossed above the last time on September 13th, CI gained 0.98% on the following trading day.
While the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the three 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 CIGNA Corp.. Out of 223 times, CI closed higher 53.36% 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 62.33% with an average market move of 1.27%.