Today, leading health insurer, Cigna Corp (CI), is coming under some selling pressure. The health insurance giant is trading lower by $3.68 to $177.37 a share. Traders and investors should note that this stock peaked out on June 9th, 2020 at $217.30 a share. Since that high pivot, the stock price shares have been steadily declining. The stock is now trading below its 50 and 200-day moving averages. This technical picture is a sign of weakness in the near term.
Traders must now watch for major support in Cigna stock around the $164.00 level. This important support area is where the stock was defended on April 3rd, 2020. Often, when a stock backtests a former reversal pivot it will be defended by the institutional crowd. I will be looking to get involved on the long side of the stock around this area. Please note, Cigna Inc (CI) will report earnings on july 30th, 2020 before the opening bell.