Good technical signals and a possible breakout for CENTENE CORP.

A possible breakout setup was detected on CENTENE CORP (NYSE:CNC) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:CNC.

Technical analysis of NYSE:CNC

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Overall CNC gets a technical rating of 10 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, CNC is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, CNC did better than 95% of all other stocks. We also observe that the gains produced by CNC over the past year are nicely spread over this period.
• CNC is part of the Health Care Providers & Services industry. There are 133 other stocks in this industry. CNC outperforms 93% of them.
• CNC is currently trading near its 52 week high. This is a good sign, certainly because the S&P500 Index is not trading near new highs.
• In the last month CNC has a been trading in the 84.14 - 94.58 range, which is quite wide. It is currently trading near the high of this range.

How does the Setup look for NYSE:CNC

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:CNC scores a 8 out of 10:

Besides having an excellent technical rating, CNC also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 92.97. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 92.79, a Stop Loss order could be placed below this zone.

How to trade NYSE:CNC?

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.

Of course, there are many ways to trade or not trade NYSE:CNC and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

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