CI closes within prior day's range after lackluster session
Cigna Corporation (CI) Technical Analysis Report for Sep 13, 2019 | by Techniquant Editorial Team
CI ended the week 4.58% higher at 160.85 after gaining $1.87 (1.18%) today, strongly outperforming the S&P 500 (-0.07%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CI as at Sep 13, 2019):
Friday's trading range has been $3.44 (2.15%), that's below the last trading month's daily average range of $4.64. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CI.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Cigna managed to close back above the 100-day moving average at 160.03. After having been unable to move lower than 158.75 in the prior session, the share found buyers again around the same price level today at 159.55. The last time this happened on Wednesday, CI actually lost -1.80% on the following trading day.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling might accelerate should prices move below the close-by swing low at 158.75 where further sell stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Cigna. Out of 664 times, CI closed higher 56.02% 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 63.40% with an average market move of 1.10%.