I reviewed Centene Corp. (CNC) on Feb. 6 ahead of its fourth-quarter earnings and wrote that its "charts and indicators are weak and I would look for further declines in the stock price in the weeks ahead." Here on Thursday a major sell-side firm cut its fundamental rating on Centene to neutral, so let's take another look at the healthcare company from a technical perspective.
In this daily bar chart of CNC, below, I see a weak picture as prices remain in a downward trend. CNC trades below the negatively sloped 50-day moving average line and below the negatively sloped 200-day line. The trading volume has been more active since September but it has not produced a sustained rally, so I believe this is liquidation (selling).
The daily On-Balance-Volume (OBV) line has been in a decline since August and that tells me that trading volume has been more active on days when CNC has closed lower. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line and a long way from a buy signal.