Resistance Above for Cerner?

Published on Wednesday, 01 February 2012 18:44 Written by Christopher Lynn

New York, February 1st (TradersHuddle.com) - Shares of Cerner Corporation (NASDAQ:CERN) closed the trading session at $61.41 near its 50 day and 200 day moving averages currently set at $60.26 and $61.91 respectively. Cerner's price action is above the 50 day moving average but below its 200 day moving average, which provide a nice trading setup, with clear reference points.

Cerner Corporation (NASDAQ:CERN) is a worldwide supplier of healthcare solutions and services. Its solutions are designed to optimize clinical and financial outcomes for healthcare organizations ranging from single-doctor practices, to healthcare systems for the pharmaceutical and medical device industries, and for the healthcare commerce system.

Cerner price action seems to be setting up for a tight range between the 50 day moving average as support and the 200 day moving average serving as resistance.

A tiered approach to enter the stock, appears to be the best way to maximize possible movements from the stock, as traders could enter Cerner with a small position and wait for the stock to break out above the 200 day moving average at $61.91, where traders could add to their position as momentum builds with the breakout. The flip side will be if support being referenced at the 50 day moving average set at $60.26 breaks it could mean further downside in the horizon for Cerner.