Anthem Health changed their name to Elevance Health (ELV) but the charts and indicators have not changed. Let's check them out before they report their latest earnings figures on Wednesday.
In this daily bar chart of Action Alerts PLUS holding ELV, below, I can see that prices have spent the month of January below the 50-day and the 200-day moving average lines. The slopes of both of these indicators have turned negative.
The On-Balance-Volume (OBV) line has declined since early December telling me that sellers of ELV are more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this weekly Japanese candlestick chart of ELV, below, I see a weakening picture. Prices are trading below the declining 40-week moving average line. The OBV line shows a long rise but also weakness in the past two months. The MACD oscillator has made a much lower high in January than April for a large bearish divergence when compared to the price action.
In this daily Point and Figure chart of ELV, below, I can see that the software is projecting a possible downside price target in the $443 area. Point and Figure charts ignore time and volume.
In this weekly Point and Figure chart of ELV, below, I can see that the X's and O's yield a potential downside price target in the $416 area.
Bottom line strategy:
Traders may be long ELV from a recommendation from our AAP portfolio
and that is okay. My review of the charts of ELV should get you to consider an appropriate sell stop for risk control and longer-term investors may view this potential weakness as a buying opportunity depending on your cost basis.
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