CNC dominated by bears dragging the market lower throughout the day
Centene Corporation (CNC) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
CNC ended Monday at 63.00 losing $1.28 (-1.99%), notably underperforming the S&P 500 (0.27%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Friday's low at 63.44, the share confirmed its breakout through the prior session low after trading up to $0.66 below it intraday.
Daily Candlestick Chart (CNC as at Aug 10, 2020):
Monday's trading range has been $1.67 (2.59%), that's slightly below the last trading month's daily average range of $1.81. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CNC.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 62.37 (S1). Centene closed back below the 100-day moving average at 64.08. When this moving average was crossed below the last time on August 6th, CNC actually gained 0.88% on the following trading day.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could speed up should prices move above the close-by swing high at 64.86 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 62.31 where further sell stops might get activated. Trading close to June's low at 59.54 we could see further downside momentum if potential sell stops at the level get triggered.
Among the nine 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 801 times, CNC closed higher 53.93% 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 63.30% with an average market move of 1.33%.