CI breaks below Thursday's low
Cigna Corporation (CI) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
CI finished the week 2.12% higher at 217.65 after losing $2.84 (-1.29%) today, slightly underperforming the S&P 500 (-0.92%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 219.32, Cigna confirmed its breakout through the prior session low after trading up to $2.55 below it intraday.
Daily Candlestick Chart (CI as at Nov 09, 2018):
Friday's trading range has been $4.22 (1.91%), that's slightly below the last trading month's daily average range of $5.44. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CI.
In spite of a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Bullish Hikkake Pattern showed up on October 15th, CI gained 3.94% on the following trading day.
After having been unable to move above 221.19 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 220.99.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 222.25 where further buy stops might get activated. With prices trading close to this year's high at 227.13, upside momentum could accelerate should the market be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Cigna. Out of 252 times, CI closed higher 61.11% 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 68.25% with an average market move of 2.21%.