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UnitedHealth Group Incorporated (UNH) - January 22, 2024


Moves and levels with SIACharts relative strength ranking reports can help investors to identify relative outperformers within a universe to potentially focus on, relative underperformers or stocks with higher risk to be avoided, and key turning points.

UnitedHealth Group Inc (UNH) for example, dropped out of the green zone in the SIA S&P 100 Index Report on December 14th, 2023, and since then, the shares have lost 5.7%. In contrast, the S&P 100 Index (OEX.I), has gained 10.3% over the same period.

On Friday, UnitedHealth returned to the Red Unfavored Zone for the first time since September, after finishing in 55th position, down 7 spots on the day and down 17 places in the last month.

Candlestick Chart Shows a Significant Breakdown on Volume:

For the last two years, UnitedHealth (UNH) shares have been range bound, trading in a channel between $440.00 and $550.00. After climbing through the range in the summer, the shares peaked near the top of this range late last year and have started to retreat.

Between October and January, a bearish Head and Shoulders Top (upper circle) formed. This week, the pattern was completed with a breakdown below the $520.00 neckline, which coincided with the bearish snapping of an uptrend as line. This breakdown happened on a big spike in volume, indicating a bearish shift in sentiment and signaling the start of a new downswing.

Next potential support appears in the $475.00 to $480.00 area based on previous lows, then the $440.00 to $450.00 area near the bottom of the longer-term range. Initial resistance on a bounce may emerge at the $520.00 neckline breakdown point, then at the 10-week moving average near $531.00.

Point and Figure Chart Turns Down from the Top of a Range:

This 1% chart highlights the significance of the recent downturn in UnitedHealth (UNH) shares. Overall, the shares have been in a sideways trend since the beginning of 2022. A surge from August to December took the shares from the bottom to the top of this range and even to a new all-time high by one row. That breakout appears to have been a buying climax, however, as the shares have since come under distribution, completing a bearish Double Bottom breakdown, and sliding back toward the $500.00 round number.

Next potential downside support appears at previous column lows near $489.25, then $465.50, $451.80 based on a horizontal count, and the summer 2023 low/channel bottom near $442.90.

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