Many of the leading healthcare stocks have come under some selling pressure recently. Centene Corp (CNC) is a leading managed healthcare and services provider that operates through government subsidized programs. The stock peaked on July 13th, 2021 at $75.59 a share. Since that pivot high, the shares have dropped sharply and currently trade at $63.77 a share. Two days ago, the stock price dropped below the important 200-day moving average, signaling further weakness in the near term.
The next major support level for Centene Corp (CNC) stock will be around the $59.00 area. This support level is where the stock was defended in late April 2021 before surging to its July 2021 top. Often, when stocks backtest their key reversal points they will be defended by the institutional crowd. This support area is also a key retrace level from the 2019 low to the July 2021 high. This should add strength to the support level when tested making this a solid bounce area. Note the chart below and be ready to take action only when the high probability levels dictate.
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