Stocks That Could Catch a Second Wind

Last week, my trading theme was the key moving-average bounce and the 50-day average in particular, which has supplied solid support to a large number of stocks in the S&P 500, and the index itself. Bounce moves can be short-lived, and this week I'm looking at stocks that have formed bases and are setting up for what might be more extended moves.

The first is Cigna (CI), the healthcare insurer, which has been trading in a horizontal channel for over a month. Bollinger band width has narrowed during the consolidation period and suggests the potential for a volatile break. The relative strength indicator is above its centerline and 21-period average, and moving-average convergence/divergence is making a bullish crossover. Volume has dropped dramatically this month, but Chaikin money flow is reflecting accumulation....239 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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