Humana Inc. (HUM) is expected to report its quarterly numbers on Wednesday. Let's take a look at the charts of this healthcare provider ahead of the numbers.
In the daily bar chart of HUM, below, we can see that the shares rallied strongly in October and are knocking on an upside breakout over the highs of May and July. HUM is trading above the rising 50-day moving average line and the rising 200-day average line.
The On-Balance-Volume (OBV) line is up near the top of its trading range but shows some near-term weakness. The Moving Average Convergence Divergence (MACD) oscillator is still bullish but has narrowed in recent sessions.
In the weekly Japanese candlestick chart of HUM, below, we see what I believe is a positive setup. Prices are up near the top of their trading range and I do not see a bearish reversal pattern. A bearish pattern this week could give us a top reversal pattern but we are not there yet. The slope of the 40-week average line has turned positive.
The OBV line is pointed up and close to a new high while the MACD oscillator has crossed to a new buy signal.
In this daily Point and Figure chart of HUM, below, we can see a potential upside price target of $641. A trade at $473.94 will refresh the uptrend.
Bottom-line strategy: I have no special knowledge of what HUM is going to report Wednesday but I am rooting for an upside breakout. I would wait for strength over $474 before going long.
