United Healthcare stock ( NYSE : UNH ) price showed reversal from the demand zone and continued to rebound, forming a hammer candlestick on the bottom near $450. Moreover, UNH stock built a base near $450 and bounced off from there amid the corrective phase of the stock. UNH stock is currently making an effort to reach the 20-day Exponential Moving Average (EMA) located around the $485 level. Buyers are displaying persistence as they continue their efforts to drive the ongoing revival of the stock. The stock is exhibiting a continuation of buying momentum, with an attempt to fill the remaining gap that had previously been left unfilled around the $485 level. This unfilled gap may have resulted from the dividend adjustment during past trading sessions.
In recent trading sessions, the price action of UNH stock has been characterized by a sequence of lower highs. However, despite this pattern, the stock has managed to remain in an overall uptrend. Moreover, the stock is slipping below the 20-day EMA which led the stock to retest its critical mark of $450, where buyers demonstrated their presence and led the rebound.
UnitedHealth Group Incorporated is a diversified health care company. The Company operates through four segments: UnitedHealthcare, OptumHealth, OptumInsight and OptumRx. It conducts its operations through two business platforms: health benefits operating under UnitedHealthcare and health services operating under Optum.
At press time, UNH stock is trading at $477.65 with an intraday gain of 1.77% and an average trading volume of 1.433 million. Furthermore, the stock reflects the greater presence of buyers. However, it is important to note that there is a notable resistance level in place, and there is also a pending gap at the $480 mark. Investors are eagerly awaiting a breakthrough of this resistance level as it could potentially lead to a fresh range breakout, creating new trading opportunities.
Daily Charts Shows Reversal From Demand Zone
On the daily charts, UNH stock displayed a fresh bounce from the demand zone and continued to accumulate from there. Furthermore, if the stock continues to experience sustained buying pressure and successfully surpasses the $480 level, and attains the 20-day EMA, it would provide a significant boost to the buyers. This traction could potentially lead the stock towards the $490 mark, and if the bullish momentum persists, it may even reach the $500 level.
On the other hand, if sellers began to assert themselves and the price faces rejection near the $480 level, then a retracement move is likely to ensure and this could result in a retest of the $460 level once again.
Short Term Charts Reflects Buyers Attainability
On the 4-hour charts, UNH stock is displaying a classic “W” pattern and attained a reversal with the surge in volume, which indicates that the stock is being accumulated by buyers and it is likely that it will retest the $480 level soon.
Furthermore, the price is near the lower trendline of the symmetrical triangle pattern. If this is surpassed, it would signal a potential breakout and could lead to a resurgence of bullish momentum.
The RSI curve shows a positive crossover and showed a bounce from the oversold region and is indicating a positive outlook.
The MACD indicator also signifies the bullishness by forming green bars and showing a bullish crossover in the intraday charts.
Conclusion:
United Healthcare (UNH) stock is currently gaining fresh momentum and appears poised to overpower the sellers in the upcoming trading sessions. This suggests a shift in market sentiment in favor of the buyers, indicating potential upward movement in the stock’s price.
Technical levels:
Major support: $460
Major resistance: $485 and $500
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/22/will-united-health-nyse-unh-stock-continue-to-accumulate/