CI stuck within tight trading range
Cigna Corporation (CI) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CI ended the month -4.9% lower at 187.65 after gaining $0.10 (0.05%) today, significantly underperforming the S&P 500 (1.54%). Trading up to $3.18 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CI as at Jun 30, 2020):
Tuesday's trading range has been $4.44 (2.37%), that's below the last trading month's daily average range of $6.60. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CI. Prices continued to consolidate within a tight trading range between 182.43 and 188.79 where it has been caught now for the last three trading days.
One neutral candlestick pattern matches today's price action, the Doji.
After spiking up to 188.79 during the day, the market found resistance at the 100-day moving average at 188.36. The last time this happened on May 12th, CI lost -4.51% on the following trading day. After having been unable to move lower than 183.69 in the prior session, Cigna found buyers again around the same price level today at 184.35.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 193.99 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 181.06 where further sell stops could get triggered. Further selling might move prices lower should the market test May's nearby low at 176.52.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 100" stand out. Its common bearish interpretation has been confirmed for Cigna. Out of 17 times, CI closed lower 88.24% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 52.94% with an average market move of -1.96%.