Indications Suggest NYSE:CNC Could Be on the Verge of a Breakout.

Our stock screener has spotted CENTENE CORP (NYSE:CNC) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:CNC.

Zooming in on the technicals.

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

Overall CNC gets a technical rating of 10 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.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that CNC is one of the better performing stocks in the market, outperforming 82% of all stocks.
• CNC is one of the better performing stocks in the Health Care Providers & Services industry, it outperforms 72% of 115 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 a tight range between 74.72 and 79.19.

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

Why is NYSE:CNC a setup?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:CNC is 9:

Besides having an excellent technical rating, CNC also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 78.10. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 77.99, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading breakout setups.

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

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

Disclaimer

This article should in no way be interpreted as advice. 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.