CI declines to lowest close since April 3rd
Cigna Corporation (CI) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CI finished the month -7.97% lower at 172.69 after tanking $5.78 (-3.24%) today, notably underperforming the S&P 500 (0.77%). This is the biggest single-day loss in over three weeks. Today's close at 172.69 marks the lowest recorded closing price since April 3rd. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 177.00, the stock confirmed its breakout through the prior session low after trading up to $5.97 below it intraday.
Daily Candlestick Chart (CI as at Jul 31, 2020):
Friday's trading range has been $6.22 (3.51%), that's above the last trading month's daily average range of $4.82. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CI.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
Prices are trading close to the key technical support level at 170.79 (S1). Prices broke below the key technical support level at 176.52 (now R1), which is likely to act as resistance going forward. The last time this happened on July 9th, CI actually gained 0.94% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
As prices are trading close to July's low at 170.79, downside momentum might speed up should Cigna mark new lows for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Cigna. Out of 523 times, CI closed higher 57.74% 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 66.73% with an average market move of 1.62%.