Don't Ignore This Chart!

Throwback Thursday for Cerner


Cerner (CERN) remains in a long-term downtrend, but the stock broke a resistance level and pulled back to this breakout zone, which now turns into support. This is called a throwback and it could offer a second chance to partake in the breakout.

First and foremost, CERN is in the early stages of a long-term trend reversal, at best. The long-term trend is still down because the 50-day EMA remains below the 200-day EMA (PPO is negative). However, the stock did exceed the May-July highs and the 200-day SMA.

The breakout zone and the 200-day SMA could offer support on this throwback. Also note that this is a gap zone and the 61.8% retracement are in play. Thus, the chart shows the makings of a short-term reversal zone as the stock bounces today, throwback Thursday.

Plan Your Trade and Trade Your Plan.

- Arthur Hill, CMT

Senior Technical Analyst,

Book: Define the Trend and Trade the Trend
Twitter: Follow @ArthurHill

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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