UnitedHealth Group Inc. - (UNH) - October 16, 2023
Responding positively to a better than expected earnings report, UnitedHealth Group (UNH) moved up 9 positions in the SIA S&P 100 Index Report to 25th place, returning to the Green Favored Zone for the first time since January. UNH had spend most of this year stuck in the red zone but has been moving up the rankings in recent weeks, climbing 36 spots in the last month.
This three-year chart highlights how a Rising Channel uptrend shifted into a Sideways Channel consolidation over the last 18 months, with the shares currently trending horizontally between $440.00 and $550.00. In recent weeks, UNH has come under renewed accumulation, snapping a downtrend line and rallying back up above $520.00.
A close above $550.00 at a new high would signal the start of a new advance with next potential resistance near the $600.00 round number, followed by a measured $660.00 on trend. Initial support appears near the $500.00 round number.
For the last decade, UnitedHealth (UNH) shares have been advancing in a step pattern of rallies followed by pauses at higher levels, a sign of long-term accumulation. Since early 2022, the shares have been in a consolidation phase, trending sideways in a rectangle approximately between $435.00 and $555.00. Since the summer, UNH has been climbing within this range and recently staged a bullish Double Top breakout. A close above $543.10 would be encouraging and would complete a pending spread double top, but a close above $554.00 at a new high would be even more significant as it could signal the start of a new rally phase.
Based on vertical and horizontal counts, next potential upside resistance on a breakout appears near $611.60, and then $649.10 on trend. Initial support appears near the $500.00 round number, then $491.90 based on a 3-box reversal and a retest of previous column lows/highs. With a bullish SMAX score of 9, UNH is exhibiting strength against the asset classes.
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