Jim Cramer included Centene (CNC) in his Mad Money Covid-19 Index. Let's check out the charts of this healthcare company.
In this daily bar chart of CNC, below, we can see that prices have broken out to new 2020 highs over the peaks in January and February. CNC is trading above the rising 50-day moving average line as well as the rising 200-day moving average line.
The daily On-Balance-Volume (OBV) line turned upwards in late March but it is below its best levels of the year. This is a bearish divergence but could be straightened out with a few strong upside days.
The Moving Average Convergence Divergence (MACD) oscillator is well above the zero line in bullish territory but we could see a bearish crossover in the days or weeks ahead as the indicator has narrowed significantly.
In this weekly bar chart of CNC, below, we can see the past three years of action. While prices have broken above the early 2020 highs they have not overcome the 2018 highs. Prices are firmly above the rising 40-week moving average line.
The weekly OBV line is in an uptrend from September and the MACD oscillator crossed to the upside this month to a fresh buy signal.
In this first Point and Figure chart of CNC, below, we used daily price data. We can see a possible or potential downside price target in the $59-$58 area.
In this second Point and Figure chart of CNC, below, we used weekly price data and here the chart is projecting a longer-term upside price target in the $134 area.
Bottom line strategy: Overall the charts of CNC are constructive but I would still want to buy strength. Aggressive traders could go long or add to longs above $75.21, or a new high trade on the daily Point and Figure chart.
