Back on October 27 we reviewed the charts of Centene and wrote that "I am in no rush to go long CNC and I do not want to anticipate its next move. However, I will recommend a purchase on a breakout over $76."
On Tuesday the company reported an earnings beat but its market reaction has been underwhelming. Let's dig into the charts and indicators. 
In this daily bar chart of CNC, below, we can see that prices pierced the $76 level in November and have climbed higher since. Prices are above the rising 50-day moving average line and the rising 200-day line. Trading volume has weakened since the middle of December but the On-Balance-Volume (OBV) line has risen to a slight new high.
The 12-day price momentum study is making a lower high from December to February even though prices made a new high. This is a bearish divergence.
In this weekly Japanese candlestick chart of CNC, below, we can see that prices broke out over $75 and rallied to the $85 area but then retested the breakout at $75. A new rally is two weeks old but trading volume is not expanding.
Like the daily OBV line the weekly OBV line is going up.
The 12-week price momentum study is showing that the current rally is weaker than the December advance.
In this daily Point and Figure chart of CNC, below, we can see a price target of $108. I am not sure what price will turn this chart bearish.
Bottom line strategy: It looks like CNC has made a short-term top reversal with an earnings beat. When prices decline on good news it is a sign to sell. Traders who are long CNC should sell and take their profits.
