CNC breaks back above 200-day moving average
Centene Corporation (CNC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CNC finished Thursday at 58.30 gaining $6.01 (11.49%), strongly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 54.85, the market confirmed its breakout through the prior session high after trading up to $3.76 above it intraday.
Daily Candlestick Chart (CNC as at Mar 26, 2020):
Thursday's trading range has been $6.44 (12.09%), that's slightly above the last trading month's daily average range of $5.39. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CNC.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 13th, CNC actually lost -15.01% on the following trading day.
Centene managed to close back above the 200-day moving average at 54.41 for the first time since March 17th. Prices are trading close to the key technical resistance level at 59.70 (R1).
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
As prices are trading close to March's high at 63.97, upside momentum might speed up should the share mark new highs for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Centene. Out of 424 times, CNC closed higher 58.02% 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 62.26% with an average market move of 1.41%.