CI breaks back above 20-day moving average
Cigna Corporation (CI) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CI finished the week -0.6% lower at 189.00 after edging higher $0.32 (0.17%) today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CI as at May 22, 2020):
Friday's trading range has been $2.86 (1.51%), that's far below the last trading month's daily average range of $6.44. Weekly volatility is also lower, being 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 prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Takuri Line. The last time a Takuri Line showed up on March 18th, CI gained 2.53% on the following trading day.
Cigna managed to close back above the 20-day moving average at 188.92. The market found buyers again today around 186.88 for the third trading day in a row after having found demand at 186.67 in the previous session and at 187.50 two days ago.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 196.20 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 186.67 where further sell stops might get activated.
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 647 times, CI closed higher 56.26% 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 63.37% with an average market move of 1.19%.