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.
Summary
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.
Chart courtesy: Arthur Hill @ Stockcharts.com
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.
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 earningswhispers.com
Join us for the daily LIVESTREAM broadcast during market hours. Watch, listen and trade as we discuss the markets in real-time.
Happy Trading,
Vinny
https://theclosingprint.com/CV_Blog/leaderboard-ibd50-winners-higher/
Disclaimer: Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional investment advisor in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise.
Investment Warnings
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.