CI closes above its opening price after recovering from early selling pressure
Cigna Corporation (CI) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CI finished the week 0.6% higher at 158.41 after gaining $0.30 (0.19%) today, slightly outperforming the S&P 500 (-0.16%). Today's close at 158.41 marks the highest recorded closing price since May 10th. Trading up to $1.65 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CI as at Jun 14, 2019):
Friday's trading range has been $3.22 (2.03%), that's slightly above the last trading month's daily average range of $3.12. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CI.
Five candlestick patterns are matching today's price action, the Gravestone Doji and the Northern Doji which are both known as bearish patterns and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man. The last time a Long-Legged Doji showed up on December 3, 2018, CI lost -3.11% on the following trading day.
Unable to break through the key technical resistance level at 158.48 (R1), the share closed below it after spiking up to 159.91 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
While Cigna is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might speed up should prices move below the nearby swing low at 154.60 where further sell stops could get triggered. Further buying might move prices higher should the market test May's close-by high at 163.99.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Cigna. Out of 667 times, CI closed higher 55.77% 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 63.42% with an average market move of 1.12%.