CI pushes through key technical resistance level
Cigna Corporation (CI) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CI finished Thursday at 169.54 gaining $12.72 (8.11%), notably outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 165.54, Cigna confirmed its breakout through the prior session high after trading up to $5.31 above it intraday.
Daily Candlestick Chart (CI as at Mar 26, 2020):
Thursday's trading range has been $16.44 (10.38%), that's slightly above the last trading month's daily average range of $14.30. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for CI.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 162.75 (now S1), which is likely to act as support going forward. The last time this happened on March 19th, CI actually lost -3.02% on the following trading day.
While the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Cigna. Out of 269 times, CI closed higher 52.79% 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 59.11% with an average market move of 0.53%.