CERN has retreated to the bottom of its bull channel

Cerner Corp. (NASDAQ:CERN) — This leading supplier of health care information technology is in a powerful bull channel that began in November 2010.

We recommended the stock on Oct. 21, 2011, at about $66, with a target of $75. It made it to over $78 in March, and then ran to a high of over $84 after crushing analysts’ Q1 estimates. Then, on May 21, it was recommended to buy the stock on a pullback to $75, and it ran to over $88.

On July 9, I said, “Now CERN has turned from the top of its bull channel, so try to buy it on a pullback at around $80. Our target is still at $95. Note the high volatility of this stock, which can be an advantage to the trader and long-term buyer. But don’t chase this stock. Let it come to you.”
The current opinion of analysts has not changed, and neither has mine. CERN has retreated to the bottom of its bull channel and it is time to buy. Note the buy signal from its MACD. The target remains $95.