UnitedHealth Group (UNH) is not expected to report its latest earnings until April 13 but the charts are suggesting some problems could lie ahead. I reviewed the charts of Centene (CNC) earlier today and pointed out that prices had broken a longer-term uptrend line. I decided that UNH was also worth a fresh look.
In this weekly Japanese candlestick chart of UNH, below, I can see that prices have broken the uptrend from the early 2020 low (trendline not drawn). Prices are trading below the declining 40-week moving average line. The weekly OBV line shows weakness from August. The MACD oscillator has been working lower for months and is now below the zero line.
In this daily Point and Figure chart of UNH, below, I can see a downside price target in the $419 area.
In this weekly Point and Figure chart of UNH, below, I see a lower price target in the $341 area.
Bottom line strategy: I raised alarms about potential weakness on UNH back on November 23 and that is playing out. Continue to avoid the long side of UNH.
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Another increasing concern for equities is that we are likely to see an 'earnings recession'.
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