The price of Humana Stock (NYSE: HUM) is trading near the demand zone showing a weak chart structure (at press time). Recently, HUM stock showed a sudden breakdown with a massive gap, which could be a panic selloff. Moreover, sellers are winning the battle now, and buyers are on the back foot as of now.
Furthermore, the price slipped below the significant moving averages, and a death crossover was noted on the charts, which showed that a substantial volume breakdown happened in the last month. Buyers cannot recover from there and are showing signs of weakness. The price action shows strong seller presence.
Humana is one of the largest private health insurers in the U.S., focusing on administering Medicare Advantage plans. The firm has built a niche specializing in government-sponsored programs, with nearly all its medical membership stemming from individual and group Medicare Advantage, Medicaid, and the military’s Tricare program.
The firm also leads stand-alone prescription drug plans for seniors enrolled in traditional fee-for-service Medicare. Humana offers employer-based plans primarily for small businesses along with specialty insurance offerings such as dental, vision, and life. Beyond medical insurance, the company provides other healthcare services, including primary-care services, at-home services, and pharmacy benefit management.
At press time, HUM stock was trading at $440.99 with an intraday drop of 0.90% giving bearish signals. Moreover, the intraday trading volume was 1.36 Million, and the market cap was 55.099 Billion.
Will HUM Stock Rebound Now?
On the daily charts, HUM stock showed a symmetrical triangle pattern breakdown, leading to a massive gap-down move last month. Furthermore, a negative outlook was floated on the charts, and profit booking persisted.
However, HUM stock is now forming small candles and does not direct any revival indications, which is a sign of bulls’ weakness. On the other hand, sellers resumed putting pressure on the stock and tried to drag it below $400, which was the strong demand zone.
The stock has a trajectory resistance mark of $470, a range for retesting. Buyers will gain traction above that range. It would be a free-fall If it slips below $400 in the next session.
Short Term Charts Shows Massive Selling
On the 4 hours chart, HUM stock showed three black crows pattern and dropped below the neckline of $450, showing selling pressure in the previous trading sessions. Moreover, the chart structure suggests a further drop can arise if the price slips below $430.
The RSI curve stayed in the oversold region, attempting for a bounce forming a negative crossover on the charts.
The MACD indicator showed a bearish crossover and began to form red bars showing bearishness on the charts.
Conclusion:
Humana stock (HUM) showed a breakdown and is trading near its support zone of $430, attempting a bounce. The bulls are losing strength and need more power to take charge.
Technical Levels:
Support Levels: $420 and $400
Resistance Levels:$470 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/2023/07/07/humana-stock-nyse-hum-sank-from-the-top-amid-bearish-pressure/