Centene Corporation (NYSE:CNC) shares continue to move higher on Wednesday. They gained almost 14% on Tuesday after reporting earnings that beat estimates.

The chart of Centene illustrates an important market principle. This is why it is the Stock of the Day.

There are many old sayings and adages on Wall Street. One of them is ‘markets have memories.' This refers to how an important price level can retain its importance for a long time. It could be weeks, months, or even years.

This can be seen on the chart.

The $74 level first became resistance in August 2018. It was also resistance in April 2020. Then it became resistance again in August 2021. This resistance was intact for three years.

The ‘memory' of Centene at the $26 level is even longer.

It first became support in September 2015. Then it was support in January 2016 and again in November 2016.

Last August, the shares went into a steep selloff. When they reached the $26 level, they found support again. Centene ‘remembered' that there was support at this level.

After this, it entered a broad rally as buyers outbid each other to attract sellers to the market. This forced the shares into an uptrend.

If they continue to move higher, there is a good chance they run into resistance around $53.25. This level was support before the shares broke down in August.

Many of the investors and traders who bought shares at this level have regretted doing so ever since. Some of them have probably decided to sell at breakeven if they have a chance.

This means if the shares return to this level, these remorseful buyers will be placing sell orders. If there is a large enough quantity of them, it could create resistance at the former support level.

Some old Wall Street sayings are true. The chart of Centene shows that, in fact, markets do have memories.

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