Shares of UnitedHealth Group (UNH) were soaring higher on a Q3 beat of earnings and the raising of their guidance. We favored the upside in our April 23 review of the stock but let's check on things again.
In this daily bar chart of UNH, below, we can see that prices dipped last month and made a successful test of the rising 200-day moving average line. Prices on Thursday should be above the 50-day moving average line. The On-Balance-Volume (OBV) line is turning up from late September and the Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside for a cover shorts buy signal.
In this weekly Japanese candlestick chart of UNH, below, we can see two lower shadows as UNH successfully rebounded off the rising 40-week moving average line. The OBV line has been strong the past two years and confirms the price gains. The MACD oscillator is above the zero line. Today's price gains should help to narrow this indicator.
In this daily Point and Figure chart of UNH, below, we can see a potential downside price target. A trade at $420.60 should turn this chart bullish.
In this weekly close only Point and Figure chart of UNH, below, we used a five-box reversal filter. Here the software projects the $773 area as a price objective.
Bottom line strategy: It looks like UNH is "off to the races" again. Traders who are not long could buy a morning dip to around $412 if available. Risk to $395.
