CNC breaks below Thursday's low
Centene Corporation (CNC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CNC finished the week 2.82% higher at 64.94 after losing $0.95 (-1.44%) today on low volume, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 65.72, Centene confirmed its breakout through the prior session low after trading up to $1.45 below it intraday.
Daily Candlestick Chart (CNC as at Feb 14, 2020):
Friday's trading range has been $1.61 (2.45%), that's slightly below the last trading month's daily average range of $1.93. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CNC.
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.
After trading as low as 64.27 during the day, the share found support at the 20-day moving average at 64.70. The last time this happened on January 2nd, CNC actually lost -1.16% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 68.64, upside momentum might accelerate should the market be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for Centene. Out of 95 times, CNC closed higher 62.11% 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 60.00% with an average market move of 1.45%.