Benefitting from a defensive shift in investor sentiment lately and renewed capital flows into defensive sectors, UnitedHealth (UNH) has returned to the Green Favored Zone of the SIA S&P 100 Index Report for the first time since about this time a year ago. Yesterday it finished in 23rd place, up 8 spots in the last week, and up 14 positions in the last month.
For over a year, UnitedHealth (UNH) has been under accumulation, advancing in a step pattern of rallies followed by periods of consolidation at higher levels. After consolidating through November, UNH has embarked on a new rally phase this month, climbing to new all-time highs and advancing toward the $500.00 round number.
Measured moves from previous trading ranges suggest potential upside resistance on trend may appear near $495.00, $515.00, $522.50 and $535.00. Initial support appears near $450.00, then the 50-day moving average near $445.00.
After spending the summer and early autumn consolidating gains made in the spring, UnitedHealth (UNH) shares have come under increased accumulation lately. Last month, the shares broke out to a new high, completing a bullish Double Top that signaled the start of a new upleg. The shares continue to climb, establishing a bullish High Pole.
Initial upside resistance may appear near the $500.00 round number, followed by $534.95 and $556.55 based on horizontal and vertical counts. Initial support appears near $438.85 based on a 3-box reversal.
With a perfect SMAX score of 10, UNH is exhibiting strength across the asset classes.
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