Anthem Inc. ( ANTM) was downgraded Wednesday to an equal-weight rating by a fundamental analyst at a major sell side firm with a $533 price target. The technical picture, however, looks more bearish for the health benefits provider, so let's check on the charts and indicators. 
In this daily bar chart of ANTM, below, we can see a price high in April and a decline below the 50-day moving average line and a recent test of the rising 200-day moving average line. A break of the longer-term moving average line is looking likely. The daily On-Balance-Volume (OBV) line rolled over in May and is pointed lower, telling us that sellers of ANTM are more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has crossed below the zero line for an outright sell signal.
In this weekly Japanese candlestick chart of ANTM, below, we can see a weakening picture. Prices are testing the rising 40-week moving average line. The line has acted as support for a while now, so a break of the line should not be ignored. The weekly OBV line turned down three months ago. The MACD oscillator has crossed to the downside for a take profit sell signal -- a sell signal in an uptrend.
In this daily Point and Figure chart of ANTM, below, we can see the software is projecting a potential downside price target in the $364 area.
In this second Point and Figure chart of ANTM, below, we used weekly price data and came up with the same $364 price target.
Bottom line strategy: Health care names have held up better than other sectors in recent months, but it now looks like that stronger relative strength is in the rear view mirror. Traders and investors in ANTM should protect their long positions and/or nail down profits.
