Humana Inc. (HUM) was reviewed in early March where I noted that, "HUM looks like it has been struggling the past five months and decline or dip would not be surprising. A decline to $258 would be negative but a close below the 200-day moving average around $250 would probably trigger further declines."
Looking back at the price action since early March (see the first chart, below) we can see that prices moved sideways until late March when prices broke below the 50-day average line. The decline did not reach our $258 threshold and this month we have seen prices rebound back to its January high. Let's look further.
In this daily bar chart of HUM, below, we can see that prices are above the flat 50-day average and the rising 200-day line. The daily On-Balance-Volume (OBV) line has been rising the past year, even when prices corrected. A rising OBV line tells us that the buyers of HUM have been more aggressive.
The trend-following Moving Average Convergence Divergence (MACD) oscillator hugged the zero line in March when prices corrected and it is now in a bullish configuration above the zero line.
In this weekly bar chart of HUM, below, we can see that prices are above the rising 40-week moving average line. The weekly OBV line remains strong and pointed higher confirming the price advance. The weekly MACD oscillator is bullish.
In this first Point and Figure chart of HUM, below, we can see an uptrend going back to 2016 and an upside price target of $391.
In this second Point and Figure chart of HUM, below, constructed by plotting percentage price swings, we see a $344 price target.
Bottom line: The bull is back with HUM. Our new price targets are $300 as a round number followed by $344 and maybe $391.
