CI pushes through key technical resistance level
Cigna Corporation (CI) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CI ended Monday at 177.37 gaining $1.83 (1.04%), notably outperforming the S&P 500 (-0.94%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CI as at Jul 13, 2020):
Monday's trading range has been $3.92 (2.22%), that's below the last trading month's daily average range of $5.41. 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 lower than usual for CI.
Buyers managed to take out the key technical resistance level at 176.52 (now S1), which is likely to act as support going forward.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 186.25. The last time this happened on March 24th, CI gained 6.54% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 170.79 where further sell stops might get activated.
Among the five 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 649 times, CI closed higher 56.39% 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 62.71% with an average market move of 1.15%.