Shares of healthcare provider Cigna (CI) are trading higher Tuesday and are poised for an upside breakout despite being downgraded by a sell-side fundamental analyst.
Let's check out the charts and indicators, says this technical analyst.
In the daily bar chart of CI, below, we see a number of bullish divergences. Prices dipped and made a new low for the move down in late November/early December.
Notice how the On-Balance-Volume (OBV) line made a dip but did not make a new low. The same goes for the Moving Average Convergence Divergence (MACD) oscillator, which just crossed back above the zero line for a new outright buy signal.