During Wednesday's Mad Money program Jim Cramer told viewers that inevitably, the drug makers and health insurers become public enemy No. 1 during election season. But just like this year, those fears end up being overblown and buying into the health care slump is a winning trade.
That winning trade was on display today with shares of UnitedHealth Group (UNH) and rival Cigna (CI) , which soared in Wednesday trading. Cramer said these gains should continue as the analysts have yet to upgrade the group now that the fears have subsided.
Let's check out the charts of both.
In this daily bar chart of UNH, below, we can see that prices made an upside breakout and gap. Trading volume was strong and prices are above the rising 50-day and rising 200-day moving averages.
The On-Balance-Volume (OBV) line is up from March and close to making a new high to confirm the new price highs. The Moving Average Convergence Divergence (MACD) oscillator looks like it is turning upward to a fresh outright buy signal.