UNITED HEALTH forming a bottom.United Health (UNH) gave an excellent dip buy opportunity last time (March 29, see chart below), with the price even breaking above the long-term Resistance Zone eventually:
The price has since entered a Channel Up pattern with the price now below its 1D MA50 (blue trend-line), having already topped and attempting to form a new Higher Low at the bottom of the pattern.
Like the previous one in June, this bottoming process can take another 3 weeks, so we will time it accordingly and target 675.00 (+21.00% rise, similar to both previous Bullish Legs).
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Unitedhealthsignals
UNITED HEALTH Time to buy again?Last time we looked into United Health (UNH) we gave a strong buy signal (October 03 2023, see chart below), which turned out to be very successful:
After getting rejected on Resistance 3, the stock started to decline structurally within a Channel Down. It is a pattern similar to the Channel Down of November 2022 - March 2023, which was again formed after UNH got rejected within the 2-year Resistance Zone, like it happened this time.
There is a high symmetry these past 2 years within the Resistance and Support Zones, so we expect the price to act accordingly. As a result, having already formed a 1D Death Cross, we expect the price to make one last Low towards the Support Zone (as long as the 1D MA50 holds as Resistance) and then rebound, which is what took place on March 10 2023, above the 0.618 Fibonacci retracement level.
As a result, we will time our buy accordingly and target $517.00 (Fib 0.618). An additional buy signal would be if the 1W RSI makes a Double Bottom, similar again to March 10 2023.
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UNITED HEALTH Mega bullish break-out. ATH next.United Health Group Incorporated (UNH) broke above the Lower Highs trend-line that has been holding since the October 31 2022 All Time High (ATH). That is a major bullish break-out signal alone but has one last short-term Resistance to overcome, Resistance 1 (516.00) which happens to be exactly on the 0.618 Fibonacci retracement level.
If that Resistance level breaks, we will buy and target Resistance 2 (530.65). Then even though the bullish leg might extend higher, we will only buy after a clear pull-back to the 0.618 Fibonacci and target the ATH (558.00) that happens to be just above Resistance 3.
The Lower Highs bullish break-out signal is strengthened by the fact that the RSI on the 1W time-frame is coming off a Bullish Divergence. On such long tern downtrends, this typically signifies a strong bullish reversal.
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UNH UnitedHealth Group Incorporated Options Ahead of EarningsIf you haven`t sold UNH here:
or here:
Then analyzing the options chain of UNH UnitedHealth Group Incorporated prior to the earnings report this week,
I would consider purchasing the 460usd strike price Calls with
an expiration date of 2024-1-19,
for a premium of approximately $36.25.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
UNH UnitedHealth Group Incorporated Options Ahead Of EarningsIf you haven`t sold the Double Top:
Then looking at the UNH UnitedHealth Group Incorporated options chain ahead of earnings , i would buy the HKEX:520 strike price Calls with
2023-4-21 expiration date for about
$6.20 premium.
If the options turn out to be profitable Before the earnings release, i would sell at least 50%.
Looking forward to read your opinion about it.
UNITED HEALTH Buy Opportunity for this quarterThe UnitedHealth Group (UNH) hit the Resistance Zone following our last (November 18) signal but as it failed to break through its top, it got rejected:
By doing so, the price even broke below the Higher Lows trend-line and the Bullish Megaphone pattern, that were in effect since February 2021. This potentially signals a deceleration on its enormous and sustainable rise but not necessarily that it turns bearish. In order to do so, it needs a closing below the 1W MA100 (red trend-line).
Right now with the price on the 0.382 Fibonacci level and the 1D RSI oversold at 30.000, it is on the very same spot it was on the June 17 2022 Low. See between the two fractals, the successive hits on the 1D MA200 (orange trend-line) and 1D MA50 (blue trend-line).
As a result, we consider this a buy opportunity back to the bottom (551.00) of the Resistance Zone.
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