Cerner (CERN) is in a rally phase and capable of further gains.
Prices pulled back slightly in the past week and some further slight decline is possible, so traders could take advantage of this dip, should it occur, to do some buying.
In this daily bar chart of CERN, above, we can see prices are above the rising 50-day moving average line and above the rising 200-day moving average. The On-Balance-Volume (OBV) line turned up in early January along with price and tells us that buyers of CERN have been more aggressive with heavier trading volume on days when CERN has closed higher on the day. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since mid-January and its current signal is a book-profits sell.
In this weekly bar chart of CERN, above, we can see some significant improvement. Prices are above the flat 40-week moving average line, but I would look for the slope of the line to turn positive soon. The weekly OBV line has broken above the highs of 2015 and 2016 and suggests there has been strong accumulation since November. The trend-following MACD oscillator gave a cover-shorts buy signal in January and is crossing above the zero line for an outright go-long buy signal.
In this Point and Figure chart of CERN, above, we can see the reversal from down to up on this chart. The breakout at $56.92 lets us project an upside price target of near $63.
Bottom line: Trade CERN from the long side and use any nearby weakness to go long or add to longs. Risk a close below $56 looking for a rally into the $63-$66 area.