It's always nice to go back to the basics of technical analysis. Broken resistance becomes support. That's currently the case with Cerner Corp (CERN) where the stock recently cleared price resistance just above 65.00 and, with recent profit taking, we've seen a return to that price support level. There's also a nice 2017 uptrend in play that shows multiple touches and CERN is slightly above that trendline support as well. Here's the chart:
Should 65 price and trendline support fail to hold, the next key level for CERN would be gap support just above 62.
About the author:Tom Bowley co-founded Invested Central and served as the site's Chief Market Strategist for more than 10 years.
His unique trading style combines both his fundamental and technical strategies to systematically manage risk while trading.
A regular contributor to StockCharts.com's bi-weekly ChartWatchers newsletter since 2006, Tom's role at StockCharts has expanded significantly since he joined the company as a full-time Senior Technical Analyst in March of 2015.