Healthy Returns: Going Long on United Health Group

This is a trading idea with a medium-term horizon spanning a few weeks. We're observing United Health Group's stock stabilizing at a significant level on the daily chart. Concurrently, there's an emerging hidden bullish divergence in the OBV, albeit unconfirmed. Given UNH's price reaction at the support zone, we're considering a long trade. Our target is the low of the candle from January 11, 2024, which initiated the as yet unfilled gap. We're doing this because in overarching downtrends, prices tend not to fully close gaps but rather turn at the low of the candle before the gap. While we don't perceive United Health Group to be in a predominant downtrend, given the trade's highly favorable risk-reward ratio of 3:1, we're cautious about unnecessary risks.

Comment:

I put a price alert on the first gap in order to monitor the PA in this area