CI rockets 2.88% closing $5.16 higher
Cigna Corporation (CI) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CI ended the week 3.7% higher at 184.49 after surging $5.16 (2.88%) today, strongly outperforming the S&P 500 (0.34%). This is the biggest single-day gain in over two weeks. Today's close at 184.49 marks the highest recorded closing price since July 6th. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (CI as at Oct 23, 2020):
Friday's trading range has been $4.70 (2.61%), that's slightly above the last trading month's daily average range of $4.53. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CI.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close above the 100-day moving average at 179.34 for the first time since July 6th. Prices are trading close to the key technical resistance level at 185.25 (R1).
Crossing above the upper Bollinger Band for the first time since October 8th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 173.43 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on October 7th, CI gained 0.89% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Trading close to August's high at 187.20 we could see further upside momentum if potential buy stops at the level get activated.
Among the 11 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 267 times, CI closed higher 53.18% 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 57.30% with an average market move of 0.37%.