ELV - capitalizing on misses from UNH and HUM

NYSE:ELV   Elevance Health, Inc.
ELV had a great earnings, beating on top and bottom line estimates and following through with a 10% dividend increase. This comes as UNH and HUM each disappoint and lower guidance.

ELV has put in a strong consolidation after retracing from 2022 highs. Using a fib fan from the 2022 all time high to the April 2023 high, and another from the September 2020 low to the September 2022 low give us an idea of the support and resistance areas that we can expect.

At the beginning of 2023 we can see a breakdown of the sentiment cycle that leads into a year long consolidation. Taking a fib retrace from this timeframe to the July 2023 low identifies ~573 as a 1.618 target, which is very close to consensus 12 month price targets and aligns to the top of the next fib fan. However, be aware that we could expect resistance anywhere in the blue area overhead when price begins to match prior highs.