Cigna is one of the largest providers of pharmacy benefit management and health insurance services in the US. It concentrates on providing healthcare services to large organizations that are capable of self-funding their insurance benefits. Additionally, Cigna is focusing on multiple expansion strategies as well such as geographic expansion as well as expansion in the pharmacy benefit management segment through its Express Scripts acquisition. Therefore, the long term growth prospects for Cigna look bright.
The long term monthly chart for Cigna shows an uptrend till about 2018 following which the stock went into a range. The $166-level has proven to be an important resistance-turned-support zone. Most recently, in August, the price has come down close to the $166 level and bounced back up. The point from where the price bounced up also happens to be the bottom of the long term trend. The stock now looks poised to swing back up to the $215-$220 level. Stop loss can be placed somewhere below the $166 support zone.
Positions taken today at $182.68 with stop Loss 22% below. With medium term take profit set at $250 giving a 36% return.
On the video and images above you will see the reason this stock was selected.
You will see the image is of a monthly chart of the stock showing the long-term upwards trend formed over the years. You will also see the entry point and the where the stop loss is placed. For more information please watch the video given.
Once it is time to move the original stop loss up you will see an additional image.