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One word to describe this chart…yikes. UnitedHealth (UNH) shares were trading near $600 ahead of its April earnings report. The company delivered $7.20 on revenues of $109.6 billion. That missed on both top and bottom line. To go along with it, the company cut its outlook, nothing heightened care activity indications within UNH’s Medicare Advantage business.
Tuesday, the company announced that CEO Andrew Witty would be stepping down and the company was suspending its 2025 outlook, expecting a return to growth in 2026. That took shares down $67.37 or 17.79% to $311.38 into the bell. With the stock nearly slashed in half and a monster 58 million shares traded, is it finally time to dip the proverbial toe in the water on UNH?
Moving Averages: Bartosiak starts by examining the stock's moving averages, such as the 50-day and 200-day moving averages. He points out the significance of crossovers and divergences between these averages, which can indicate potential trend changes.
Support and Resistance Levels: Bartosiak identifies key support and resistance levels on the chart. These levels act as barriers that the stock price must breach or hold above, providing traders with critical decision points.
Chart Patterns: He discusses chart patterns like head and shoulders, cup and handle, or flags, and their relevance in predicting future price movements. These patterns can offer valuable insights into potential bullish or bearish trends.
Volume Analysis: He emphasizes the importance of volume analysis in confirming price trends. An increase in trading volume during a breakout or breakdown can validate the significance of a price move.
Dave Bartosiak's technical analysis approach adds depth to our understanding UnitedHealth’s stock chart. By paying attention to moving averages, support and resistance levels, chart patterns, technical indicators, and volume, he equips investors with a comprehensive toolkit for making well-informed decisions in the stock market. Remember, while technical analysis is a valuable tool, it's important to consider other factors like fundamental analysis and market sentiment before making investment choices.
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UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).