Main to remember
- The actions of Unitedhealth jumped Friday after having dropped to a hollow of the Pandemic era Thursday following reports according to which the company is the subject of a investigation for a possible fraud in Medicare.
- After staging a decisive closure below the mobile averages of 50 and 200 days in mid-April, the stock exchanged heavily lower in a decision which pushed the relative force index in territory of occurrence.
- Investors are expected to look at major levels of support on the UNITEDHEALTH graph around $ 249 and $ 212, while also following areas of crucial general costs close to $ 325 and $ 365.
The Unitedhealth Group (UNH) actions increased on Friday after reaching a hollow of the Pandemic era yesterday following the information according to which the company is the subject of an investigation by the Ministry of Justice for a possible fraud in Medicare.
It was difficult for several weeks for the health care giant. Last month, the shares dropped by 22% in one day when the company reduced its forecasts for the year, while Tuesday this week, the title dropped by 18% on the news that CEO Andrew Witty resigned.
The Unitedhealth shares increased by 6% recently to around $ 290, leading lawyers S&P 500 on Friday. Even with today’s earnings, the action has lost more than half of its value in last month, because an increase in medical costs aggravates other challenges that the company is faced, including a broader public reaction against the health insurance sector.
Below, we decompose the techniques of the weekly table of Unitedhealth and underline the main price levels to monitor.
RSI signal monitoring conditions
After staging a decisive closure below the mobile averages of 50 and 200 days in mid-April, the actions of Unitedhealth fell sharply in a decision which pushed the relative force index (RSI) in the surveillance territory.
In addition, the significant drop in action this week has occurred on the highest volume of weekly trading since April 1998, signaling the conviction of sales by larger market players, such as institutional investors and pension funds.
Let us highlight two levels of major support which can act as a negotiation board in the middle of the possibility of additional cooling and also to identify areas of crucial general costs to follow the recovery efforts in the stock.
Major support levels to monitor
The first lower level to watch is $ 249. This area will probably draw significant attention near the low week of this week, which is also aligned closely with a range of corresponding commercial activities on the graph between January 2018 and April 2020.
The sale below this level opens the door to a lower support retest around $ 212. Investors can look for purchasing and maintenance opportunities in this region near a horizontal line which has almost several hollows on the March 2018 graph to the lowest of the March 2020 pandemic.
Crucial air areas to follow
During the recovery efforts, investors should initially follow the $ 325 area. Actions may arise at resistance to general costs at this level near the peak of August 2020 and February 2021.
Finally, the ability of the Bulls to recover this crucial level could see Unitedhealth actions climb around $ 365. Investors who have accumulated stocks at lower prices can decide to place sales orders at this location near twin peaks that have developed in the table between November 2020 and January 2021.
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