Neidorff said that while they were expecting to have Covid-19 under control by now, that is not the case and that will be impacting their earnings. Centene expects revenues to be up $3.5 billion for the year.
When asked about the timeline for a Covid-19 vaccine, Neidorff said they still don't know yet how long the antibodies will stay in your system, which could make the vaccines under development very short-lived.
Let's check out the charts and indicators of CNC.
In the daily bar chart of CNC, below, we can see that the shares had a modest decline in February and March. CNC has since rallied to a new high in April and then turned sideways. Prices have crisscrossed the flat 50-day moving average line but are above the rising 200-day moving average line. CNC dipped close to the 200-day line in late June and it may have been a buying opportunity.
The On-Balance-Volume (OBV) line has moved sideways since April to match the price action and reminds us that buyers and sellers of CNC are largely in balance. The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line in positive territory but could turn up or down from here -- all depending on the price action ahead.
In the weekly bar chart of CNC, below, we can see that the $75 area has represented key resistance in 2018 and again this year. This is the top end of a large consolidation pattern. A breakout over $75 will be bullish for CNC. Prices are above the rising 40-week moving average line.
The weekly OBV line has been neutral since April but the longer-term pattern is bullish. The MACD oscillator has narrowed recently and could turn upward if prices rally from here. The height of the large consolidation pattern is $30 and when added to the breakout point around $75 gives us a longer-term price target of around $105.
In this weekly Point and Figure chart of CNC, below, we can see that the software is projecting a potential upside price target in the $82 area. This would mean that we could have a longer-term breakout above the resistance around $75.
Bottom-line strategy: Patient investors could probe the long side of CNC risking a close below $60. Our targets are $75, $82 and $105.