Cerner (CERN) has been under selling pressure for months, the shares trading lower and lower. Is there a bottom in sight?
CERN appears to have fallen out of favor with investors, with prices trending lower the past 12 months (see the chart above). Prices are below the declining 50-day and 200-day simple moving averages. The On-Balance-Volume (OBV) line has been trending lower since early August telling us that sellers have been more aggressive and volume has been higher on days when CERN has closed lower. There is a little light at the end of the tunnel from the momentum study. Since November, the rate of decline in the price of CERN has been declining. The stock continues to trade lower but at a slower pace.
This longer-term chart of CERN, above, is not yet giving us hope for a turnaround. Prices are pointed down with a declining 40-week moving average. The OBV line has been weakening the past two months on this timeframe while the trend-following MACD oscillator is "buried" in negative territory. With prices testing the bottom end of a $55-$50 support area from early 2015, they could continue to weaken to the next support level around $45. A bottom for CERN is off in the future.