In-Depth Technical Analysis of CENTENE CORP.

CENTENE CORP (NYSE:CNC) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:CNC.

Technical Analysis Observations

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Overall CNC gets a technical rating of 9 out of 10. Both in the recent history as in the last year, CNC has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, CNC did better than 72% of all other stocks. On top of that, CNC also shows a nice and consistent pattern of rising prices.
• CNC is one of the better performing stocks in the Health Care Providers & Services industry, it outperforms 72% of 116 stocks in the same industry.
• CNC is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so CNC is lagging the market slightly.
• In the last month CNC has a been trading in the 74.72 - 79.75 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been consolidating recently, this may present a good entry opportunity.

Our latest full technical report of CNC contains the most current technical analsysis.

How do we evaluate the setup for NYSE:CNC?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:CNC currently has a 9 as setup rating:

Besides having an excellent technical rating, CNC also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 79.16. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 77.56, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for CNC in the last couple of days, which is a good sign.

Trading breakout setups.

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.