CI closes lower for the 2nd day in a row
Cigna Corporation (CI) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CI ended the week 5.47% higher at 220.34 after losing $1.55 (-0.7%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CI as at Feb 14, 2020):
Friday's trading range has been $3.35 (1.51%), that's far below the last trading month's daily average range of $5.23. 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 strongly higher than usual for CI.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on Monday, CI gained 2.31% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 224.64 where further buy stops might get triggered. Trading close to 2018's high at 227.13 we could see further upside momentum if potential buy stops at the level get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for Cigna. Out of 113 times, CI closed higher 58.41% 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 61.95% with an average market move of 1.07%.