Anthem (ANTM) was last reviewed nearly a year ago, where I wrote, "In this Point and Figure chart of ANTM, we can see a breakout at $148 from a large base pattern. The recent trade at $172 is a fresh breakout. The potential upside price target is $193. ANTM is still in an uptrend and traders want to operate from the long side. Try buying ANTM at $170 or better, risking to $160 and looking for gains to the mid-$190s."
In this daily chart of ANTM, below, we can see that our $193 price target was reached in June of 2017. Prices continued still higher and spiked towards $270 in late January/early February. Prices have corrected lower the past two months or so and could be poised for fresh gains. Prices corrected about $50 since early February and notice that the On-Balance-Volume (OBV) line lost little ground telling us that holders of ANTM largely stayed put. As prices made lower lows in February and March the 12-day momentum study made higher lows. This is a bullish divergence and tells us that the pace of the decline slowed and may be foreshadowing a rally.
In this weekly bar chart of ANTM, below, we can see that prices are above the rising 40-week moving average line. The weekly OBV line has been strong and rising since late 2016 while the recent decline in the line has been shallow suggesting that the price strength is likely to continue. The weekly Moving Average Convergence Divergence (MACD) oscillator crossed to the downside in February for a take profits sell signal but the two moving averages that make up this indicator are now narrowing to a possible buy signal.
Bottom line -- price strength above $240 should be able to start fresh gains to the $300 area. Risk below $215.