Centene Stock Plunges 40% to an 8-Year Low—Watch These Key Price Levels

Centene (CNC) shares plummeted on Wednesday after the managed care giant withdrew its full-year outlook after receiving new data about enrolments and rising member health costs.

The company, which focuses on Medicaid and Affordable Care Act insurance, said reports from the majority of its marketplaces revealed that growth slowed more than anticipated and patient illness was significantly higher than it had previously expected. As a result, it expects lower federal reimbursements and increased costs, which it says will impact 2025 results by about $1.8 billion, or $2.75 in adjusted earnings per share.

Centene shares dropped 40% on Wednesday to $33.78, the lowest closing level since early 2017. The stock has lost around two-thirds of its value since setting a record high in August 2022. Since the start of 2025, Centene shares have dropped 44% as the company and its industry peers grapple with rising medical costs and declining enrollments.

Below, we take a closer look at Centene’s monthly chart and use technical analysis to point out long-term price levels worth watching out for.

Drop Below 200-Month Moving Average

Since setting their all-time high in August 2022, Centene shares have remained in a steady downtrend. Losses have accelerated in early July, which has seen the price plunge below the closely watched 200-month moving average and the relative strength index fall into oversold territory. 

Importantly, the sharp move lower has occurred on above average-volume, indicating selling conviction from larger market participants.

Let’s identify major support and resistance levels on Centene’s chart that investors will likely be watching.

Major Support Levels to Watch

Further weakening momentum this month could see the shares test support around $27. This area may attract buying interest near the lower range of a period of sideways drift that formed on the chart between October 2015 and December 2016.

A decisive breakdown below this level may trigger a more significant sell-off to $17. Investors could look for discounted buying opportunities in this region near the top an ascending triangle that developed on the chart over a seven-month period between October 2013 and April 2014.

Crucial Resistance Levels to Monitor

During recovery efforts in the stock, investors should initially monitor the $42 level. The price may run into overhead resistance in this location near the July 2015 peak and September 2019 trough, both of which currently sit in close proximity to the upward sloping 200-month MA.

Finally, buying above this level could propel a move toward $74. Investors who have bought Centene shares at lower prices may look to lock in profits in this area near a crucial trendline that connects a series of corresponding trading levels on the chart from August 2018 all the way to October last year.

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As of the date this article was written, the author does not own any of the above securities.