HUM: Test previous lows?Humana Inc
Short Term - We look to Sell a break of 480.38 (stop at 489.09)
Short term momentum is bearish. Daily/Weekly Ichimoku Cloud resistance is seen at 488. Further downside is expected. A break of 480.00 is needed to confirm follow through negative momentum.
Our profit targets will be 455.29 and 440.00
Resistance: 500.00 / 520.00 / 580.00
Support: 480.00 / 450.00 / 400.00
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HUM trade ideas
$HUM, $XLV, Healthcare sector worth watching nowIf you have been invested in healthcare stocks or ETF's you may want to take profits between now and the end of October. I am keeping an eye on this chart for some good trades. It is a low volume stock with very low options volume, so be very selective with your entry time/place and your option price. Daily trading ranges can be large or small, so give extra consideration to time frame and holding time in your trade plan.
Please note on the chart:
* Linear regression channel shown from 2019
* Yellow dashed lines showing 370-470 trading range
* Light yellow rectangle shows two-year range which was recently broken higher
* White line (channel center) regularly acts as support or resistance, price is wavering along this line
* RSI only had one instance of going over 67 (white oval) or under 33 since 2019, and that resulted in sharp reversal, for now it is moving lower
* Stochastic %D has completed three peaks since dipping below 30 and is now turning down
Price was weak on Monday and closed lower, but still in its recent range (sideway. I am looking at a few possibilities for trades:
* If the market rallies this week HUM may stay under the white line and selloff down to 457, 435
* If the anticipated October leg down occurs, then price may move up to analysts' 550 price target (also top of channel)
* Price has been sideways for two weeks, so it should move higher/lower soon
Buy ideaA nice running flat detected.
This is the update to the earlier idea for Humana. Linked to this idea.
As a rule for entering any trade, need to get a confirmation.
There are different classical entries - for zigzags, flats, just google. They are simple, but you have to be patient, even if the core structure looks complete.
Don't trade expectations, any entry should be a rules-based one.
Trade safe
$HUM Humana LT Chart - LEAP OptionsHumana fairly rangebound for the last six months. Tested ~$470 key resistance level six times unsuccessfully. Monitor for a breakthrough and close above this level. Once this occurs we could see an overdue strong move to the $600 area by 1H of 2024.
Long Term Target: $580-$615 range by 1H '24
I plan to play this using LEAP options. I'm looking at the $450 and $500 Jan'24 calls. If you're looking to limit risk and capital outlay, I would consider a vertical call spread buying either the $450 or $500 call and selling the $600.
Note: This is NOT investment advice. This is opinion only.