CNC breaks back above 100-day moving average
Centene Corporation (CNC) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CNC finished the month -4.08% lower at 63.55 after gaining $0.96 (1.53%) today, slightly underperforming the S&P 500 (1.54%). Trading up to $1.63 lower after the open, Centene managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CNC as at Jun 30, 2020):
Tuesday's trading range has been $3.05 (4.86%), that's above the last trading month's daily average range of $2.45. 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 CNC. Prices continued to consolidate within a tight trading range between 59.57 and 64.13 where it has been caught now for the whole last trading week.
The share managed to close back above the 100-day moving average at 62.58. When this moving average was crossed above the last time on June 25th, CNC actually lost -5.70% on the following trading day. Prices are trading close to the key technical resistance level at 64.44 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 64.44 where further buy stops could get triggered. As prices are trading close to June's high at 67.26, upside momentum might speed up should the stock mark new highs for the month. As prices are trading close to June's low at 59.54, downside momentum could accelerate should the market mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Centene. Out of 797 times, CNC closed higher 54.20% 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 63.61% with an average market move of 1.41%.