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Cigna Healthcare Bullish Breakout and Follow Through

Cigna Healthcare (CI) was featured on the September 9 watch list, carrying over into this week due to the breakout on Thursday. The stock followed through thrusting higher on Monday. In addition, the current momentum is volume driven, leading us to believe Cigna will head higher.

Healthcare Stocks at 52-Week Highs

Monday we highlighted the apparent relative strength in healthcare, industrials, materials, staples, and technology stocks. The healthcare sector has been persistent, popping an additional 9.30% since breaking above resistance the first week of July. XLV is the third panel from the top.


Sectors Making 52-week highs

Chart courtesy: Arthur Hill @

Cigna Healthcare Breakout

We’ve set alerts at (199.19) should Cigna Healthcare breakout above the 199.09 pivot high. RS Line is rising fast, indicating relative strength versus the S&P 500. Volume surged to 145% above average, suggesting traders are bullish. In addition, the stock is forming the last leg of a cup pattern, as noted by MarketSmith. The handle will most likely form somewhere between 210 and 227.13, the January peak.


Cigna Healthcare Breakout 09-17-2018


Given investors interest and the number of fund managers adding Cigna to their portfolios, we assume the stock will continue along its merry way in the short-term.

Cigna (CI) reported 2nd Quarter June 2018 earnings of $3.89 per share on revenue of $11.5 billion. The consensus earnings estimate was $3.33 per share on revenue of $11.1 billion. The Earnings Whisper number was $3.40 per share. Revenue grew 11.2% on a year-over-year basis.

The company said it expects 2018 earnings of $13.60 to $13.90 per share. The company’s previous guidance was earnings of $12.85 to $13.25 per share and the current consensus earnings estimate is $13.24 per share for the year ending December 31, 2018. – Source

Futures are green.

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