Cerner (CERN) is a big healthcare IT company in a very competitive industry. They recently reported earnings that were mostly in line with predictions but also provided some strong guidance. As a result, the stock has moved vertically into the low $60’s, and it appears there is more room to run.
This month has brought good turnover to this name. Take a look at the chart, where you’ll clearly see a strong, classic breakout on volume aligned with a confirmed buy signal on the MACD. We should see Cerner in the $70’s before too long. However, it is running a bit hot (note the reading in the RSI), so it wouldn’t surprise to see some give back – but that is just another chance to buy more.
For our Explosive Options trade, we recently bought the Dec 60 call at 2.30.