CNC dominated by bulls lifting the market higher throughout the day
Centene Corporation (CNC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
CNC finished Wednesday at 59.90 surging $1.72 (2.96%) on high volume, significantly outperforming the S&P 500 (-0.46%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 58.96, the market confirmed its breakout through the previous session high after trading up to $1.21 above it intraday.
Daily Candlestick Chart (CNC as at Sep 16, 2020):
Wednesday's trading range has been $1.75 (2.99%), that's slightly above the last trading month's daily average range of $1.73. 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.
Buyers managed to take out the key technical resistance level at 59.65 (now S1), which is likely to act as support going forward. After spiking up to 60.17 during the day, Centene found resistance at the 20-day moving average at 59.93. The last time this happened on September 3rd, CNC lost -0.93% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the nine 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 Centene. Out of 248 times, CNC closed higher 51.61% 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 60.89% with an average market move of 0.66%.