We reviewed the charts of Cigna (CI) on Dec. 21 and recommended, "As a market watcher you always want to pay attention when a stock does not decline on what is perceived as bearish news. Traders could go long CI at current levels risking to $208."
Let's check and see if our strategy is working.
In this daily bar chart of CI, below, we can see that prices finished out December strong and continued to rise in January. Prices are trading above the rising 50-day moving average line as well as the slightly declining 200-day line. The On-Balance-Volume (OBV) line has been very strong and tells us that buyers of CI have been very aggressive. The Moving Average Convergence Divergence (MACD) oscillator is bullish.
In this weekly Japanese candlestick chart of CI, below, we see a positive picture. Prices are above the 40-week average line. The OBV line and the MACD oscillator show improvement in December.
In this daily Point and Figure chart of CI, below, we can see a $321 price target.
In this weekly Point and Figure chart of CI, below, we used close only price data and a five box reversal filter. Here the software suggests we could see $397.
Bottom line strategy: Continue to hold longs recommended last month. Raise stops to $212 from $208. The $321 area is our price target.
