Cigna Corp (CIBH) shares have seen the Money Flow Indicator drop below 30, potentially spelling a near-term reversal if it crosses below the 20 line.  The Money Flow Indicator is a unique indicator that combines momentum and volume with an RSI formula. Because of its incorporation of volume, the MFI is better suited to identify potential reversals using both overbought/oversold levels and bullish/bearish divergences. As with all indicators, the MFI should not be used by itself. A pure momentum oscillator, such as RSI, or pattern analysis can be combined with the MFI to increase signal accuracy.

The MFI was created by Gene Quong and Avrum Soudack and they believed a reading above 70-80 would signify Overbought territory where a reading below 20-10 would indicate that the conditions were indicative of an Oversold price level.

When dealing with the equity markets, investors are often tasked with trying to find stocks that are bound for glory. Every investor dreams of finding those stocks that were overlooked but are poised to pick up momentum. New investors are often instructed to set goals before starting to invest. Creating attainable, realistic goals can be a good starting point before digging into the investment trenches. After setting up goals considering financial status, objectives, timeframes and risk appetite, the next step may involve creating an actionable plan. Once the plan is in place, it may be extremely important to routinely monitor the performance of the portfolio. There are often many well crafted investment plans that for whatever reason don’t seem to be working out properly. Being able to evaluate and adjust the plan based on market activity may end up being the difference between a winning or losing portfolio. Being able to adapt to the fast paced and often times tumultuous market landscape can be a gigantic benefit for long-term portfolio health.

When undertaking stock analysis, investors and traders may choose to view multiple technical levels in addition to the MFI. Cigna Corp (CIBH) currently has a 14-day Commodity Channel Index (CCI) of 39.26. Investors and traders may use this indicator to help spot price reversals, price extremes, and the strength of a trend. Many investors will use the CCI in conjunction with other indicators when evaluating a trade. The CCI may be used to spot if a stock is entering overbought (+100) and oversold (-100) territory.

We can also do some further technical analysis on the stock. At the time of writing, the 14-day ADX for Cigna Corp (CIBH) is 30.29. Many technical chart analysts believe that an ADX value over 25 would suggest a strong trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). Some analysts believe that the ADX is one of the best trend strength indicators available.

Interested investors may be watching the Williams Percent Range or Williams %R. Williams %R is a popular technical indicator created by Larry Williams to help identify overbought and oversold situations. Investors will commonly use Williams %R in conjunction with other trend indicators to help spot possible stock turning points. Cigna Corp (CIBH)’s Williams Percent Range or 14 day Williams %R currently sits at -50.00. In general, if the indicator goes above -20, the stock may be considered overbought. Alternately, if the indicator goes below -80, this may point to the stock being oversold.

Tracking other technical indicators, the 14-day RSI is presently standing at 50.60, the 7-day sits at 55.92, and the 3-day is resting at 72.71. The Relative Strength Index (RSI) is an often employed momentum oscillator that is used to measure the speed and change of stock price movements. When charted, the RSI can serve as a visual means to monitor historical and current strength or weakness in a certain market. This measurement is based on closing prices over a specific period of time. As a momentum oscillator, the RSI operates in a set range. This range falls on a scale between 0 and 100. If the RSI is closer to 100, this may indicate a period of stronger momentum. On the flip side, an RSI near 0 may signal weaker momentum. The RSI was originally created by J. Welles Wilder which was introduced in his 1978 book “New Concepts in Technical Trading Systems”.

For further review, we can take a look at another popular technical indicator. In terms of moving averages, the 200-day is currently at 1.58, the 50-day is 1.48, and the 7-day is resting at 1.43. Moving averages are a popular trading tool among investors. Moving averages can be used to help filter out the day to day noise created by other factors. MA’s may be used to identify uptrends or downtrends, and they can be a prominent indicator for detecting a shift in momentum for a particular stock. Many traders will use moving averages for different periods of time in conjunction with other indicators to help gauge future stock price action.

Investors are constantly trying to make smarter decisions when it comes to dealing with the stock market. There are so many choices out there that it may become completely overwhelming at first. Starting with a baseline approach can help ease the burden of too much information. Developing the proper investment knowledge may take a lot of time and effort. Many investors may find out the hard way that shortcuts are not the answer to achieving long-term success in the stock market. Many people may occasionally get lucky and think they can do no wrong. Over time, this type of investor may see profits start to shrink and losses start to pile up. Many investors are bombarded with hot investment tips. It can be very tempting to take advice from someone who has actually made money in the markets previously. However, the old adage remains the same; past results may not indicate future results. Thinking that something that has worked in the past will no doubt work in the future can be a recipe for portfolio disaster. Individual investors who do their own thorough research should be much better positioned to make the proper decisions when the time comes.