This Healthcare stock is up and to the right. Let’s look at $CI – August 25, 2022
CI
This is Scott with your Chart of the Day. I want to take a look at a healthcare stock that is trending beautifully and has been trending beautifully all year long, it’s Cigna Health ( NYSE: CI ).
As you can see Cigna ( NYSE: CI ) has been in a pretty strong uptrend since December of last year. Now yes, it has broken down under the 50-day a few times here and there, but if you have been open-minded to try and catch this at the 50-day as it crosses back above, you have had some pretty good trading opportunities.
More recently, you can see how the stock is holding up near the 8-day and the 21-day exponential period moving average. And when it pulls back, if I bring in the volume a little bigger here you can see that when it pulls back it pulls back on relatively low volume. And when it goes up the buyers step in, and you can see, the buying volume or the buyers are more aggressive than the sellers.
Now, that is what we like to see within a strong uptrend. And so if you are looking at this stock right now you are probably asking, okay, cool Scott, now how do I buy it? Well, I think it is worth taking a look at as it’s close to this daily 8-exponential period moving average. And then, potentially, adding to that position if it can make a new high above 294.00.
Now, as you can see, 294.00 was resistance here, here, here, here, and here. And so if we can get above, stay above, and do it on volume, that could, potentially, be actionable for a break of a new high. And if it does that, it’s making a 52-week high.
Now, what we want to see when the market is potentially turning up is, that we want to see stocks near their highs, making new highs. There is something Dan Fitzpatrick told me a while ago, and it is that stocks that make new highs tend to keep making them. And so that, in my opinion, is something we want to watch for here on Cigna Health ( NYSE: CI ).
So I think it makes sense to have an alert right around that 294.00 level. Now again, you could probably get some started around the 8-day and you would want to hold that as long as it can hold above that 21-day. But then you are adding with a strong move and high volume through 294.00.
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