There is blood in the streets for UnitedHealth Group (UNH) this morning. The stock is getting crushed, trading below $295 in pre-market action. The culprit is a “double whammy”, disappointing earnings combined with negative headlines surrounding Medicare reimbursement rates.
As a disciplined technical trader, I see opportunity where others see disaster. The chart is effectively hitting the reset button, and we are approaching two major technical levels where the “Smart Money” will be looking to step in.
The “Falling knife” vs the floor
Right now, UNH is in freefall. Trying to buy it here is like trying to catch a falling knife—you’re going to get cut. We need to wait for the stock to hit a structural floor where the probabilities favor a bounce.
Target 1: The gap fill ($272)
My first major level of interest is $272.00. If you look at the daily chart, you will see a massive gap that formed back in August. In technical analysis, “gaps love to fill.” They act like magnets, pulling price down until the void is closed. Once UNH flushes to $272, that magnetic pull shuts off, and buyers often step in for a technical bounce. This is a prime zone for day traders to look for a reaction.
Target 2: The double bottom ($235)
If the selling pressure intensifies and we slice through the gap, the next major “back the truck up” level is $235.00. This represents a structural Double Bottom—revisiting the major swing lows from last summer. This is where institutional algorithms often sit, ready to defend the lows. A test of $235 offers a massive risk-reward setup for swing traders looking for a multi-week recovery.
The bottom line
Ignore the scary headlines about Medicare and earnings. The damage is done. Now, we wait for the price to come to us. Watch $272 for the first bounce, and keep $235 on your radar as the ultimate fortress of support.
Source: https://www.fxstreet.com/news/unitedhealth-massage-the-trading-levels-to-watch-202601271408