Humana 
HUM took a nosedive to "crash" levels (based on my selected simple moving averages (SMA)) this morning after a lower-performance rating for a widely used Medicare insurance plan is expected to hurt enrollments for 2025 (and will potentially hit the health insurer's revenue and bonus payments in 2026). However, I view this massive drop as an opportunity for an initial long entry for a great value stock. The company is strong, highly rated among patients, and solid fundamentals despite the anticipated earnings drop. From a technical analysis perspective, it touched my "crash" SMA, but may dip further after a dead cat bounce to the $190s in the coming days or weeks. But, predicting true bottom is a fool's game, so at $220.00, HUM is in a personal buy zone for an initial long entry.
Target #1 = $250.00
Target #2 = $275.00
Target #3 = $314.00
Target #4 = $340.00
HUM took a nosedive to "crash" levels (based on my selected simple moving averages (SMA)) this morning after a lower-performance rating for a widely used Medicare insurance plan is expected to hurt enrollments for 2025 (and will potentially hit the health insurer's revenue and bonus payments in 2026). However, I view this massive drop as an opportunity for an initial long entry for a great value stock. The company is strong, highly rated among patients, and solid fundamentals despite the anticipated earnings drop. From a technical analysis perspective, it touched my "crash" SMA, but may dip further after a dead cat bounce to the $190s in the coming days or weeks. But, predicting true bottom is a fool's game, so at $220.00, HUM is in a personal buy zone for an initial long entry.Target #1 = $250.00
Target #2 = $275.00
Target #3 = $314.00
Target #4 = $340.00
Note
Target #1 reached for a 13.6% gain.Trade active
Target #2 reached for a 25% gain.Trade closed: target reached
Target #3 reached for a +42.7% gain. While target #4 looks like it may be reached soon, I'm exiting the position. 2026 earnings estimates are weaker than 2025. If this is true, more downside could occur - which will be another entry near or below my previous entry.
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If you enjoy this idea, please follow for more: tradingview.com/u/WorthlessViews/
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.