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5 Buy Signals From the Health Care Sector

Cigna

Cigna (CI) has been another poster child for the S&P's orderly rally. Just like West, Cigna started on its own uptrend at the end of 2012, bouncing in between well-defined trendline support and resistance levels for the last seven months. Now, with shares of CI bouncing off of support this week, it makes sense to be a buyer.

>>Beat the S&P With 5 Stocks Everyone Else Hates

From a percentage standpoint, Cigna's retracement during the last correction was pretty tepid. That's a good sign for buyers -- this stock has been rallying harder than the market during the up-legs and falling less than the broad market on the down-legs. This trendline bounce is pitting Cigna to a test of resistance just below $70. That mini-breakout should add some extra upside to this latest buying move.

As with West, the 50-day is the ideal place for a protective stop in Cigna.

To see this week's trades in action, check out the Technical Setups for the Week portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

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Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji

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