UnitedHealth UNH - Institutional Exit or Long-Term Opportunity?Key Insights
UNH has witnessed a historic -24% monthly drop, breaking multiple key long-term supports on extreme volume — often a sign of institutional distribution or capitulation.
Bearish Outlook (Primary Bias):
Current price is testing the 0.5 Fibonacci retracement ($322 - $287), a critical make-or-break zone.
A monthly close below $287 will likely trigger the next leg lower toward $250 and possibly the $200 psychological handle.
The bearish momentum remains dominant, confirmed by RSI deep in bear territory and MACD accelerating down.
Invalidation Levels (For Shorts):
Aggressive short invalidation: Weekly close above $395.33.
Full bearish invalidation (shift to bullish bias): Monthly close above $447.21.
Bullish Opportunity Zones:
Watch for strong bullish reversal at the $287 - $249 support zone, aligning with 0.382 Fib and historical demand.
If $200 - $160 is ever reached, it becomes a high-probability accumulation zone for long-term investors.
Probability:
$395 - $447 Strong Short Bias , Look for retests & rejection
$322 - $287 Neutral to Bearish (watch reaction), Currently testing key support
$249 - $200 High-Probability Long Setup, Look for confirmation reversal
Above $447.21 Bullish Bias Resumes, Invalidate bears, shift to longs
Conclusion:
UNH is at a critical long-term support crossroad.
Patience is key—traders should avoid chasing the lows and wait for higher-probability setups at key levels.
Let the chart guide the trade
