UNH, Holding The Established Level, Possibility To Continue!

Hello Traders Investors And Community, welcome to this analysis where we are looking at the selected single stock value UNH (UNITED HEALTHGROUP INC) the recent events within it, the current interesting price-formation and what the stock can provide in order for possible upcoming trading opportunities. As I pointed out already in previous analysis there are stocks which can move anticyclical to the main market as the demand is increasing due to the corona-crisis, one sector in this possible anticyclical market movers is the health sector where UNH is building an important part within health insurance as more and more people looking for improved healthier life and want to be secure in this case, therefore, this fact can play a big factor in the development of bullishness within this stock, besides that there are also some meaningful technical signals making an upcoming bullish continuation possible within this stock.

As you can examine when looking at my chart UNH is moving in this recently established uptrend channel where it bounced at strong support at the POINT OF CONTROL you can watch marked in red, this is the point where the stock showed the most volume overall, therefore, an important support/resistance level which confirmed as support in this case. Furthermore, we have this newly established all-time-high at 305.5 which has taken out the all-time-high formed before the corona-breakdowns seen this year, firstly this can also be a bull-trap but as the price is holding near that level this is showing up some significant bullishness in that level and a sign that the breakout could not have been a bull-trap. As the stock currently tests this level with some healthy volatile up moves this can be an indication for a possible continuation to the upside when UNH manages to climb above these levels as you can see it marked in my chart.

As you can watch in my chart there are some solid support levels providing an increasing possibility for the bullish case, once it is the 100-EMA which is marked in black, secondly, it is the POINT OF CONTROL which is building up very strong support in this level and next to the overall uptrend channel building altogether a coherent bullish support cluster here where the price will have a hard time going below when there comes bearish pressure into the surface. These factors making a bullish continuation to the upside more possible which will be confirmed when UNH takes out the current resistance it is testing and forms some faster-moving trend which finally breaks above the uptrend channel to confirm more bullishness in this case, remember that this has to be confirmed properly and before it does not happen there is still a possibility to show bearish which is quite marginal but it should not be ignored in either case.

Overall this stock is showing some serious bullish signals for a possible continuation to the upside making the movement at the all-time-high-conditions in this stock a stronger one than rest of the market where many stocks and some indices are still below the all-time-high established before the corona-breakdowns and therefore there is no confirmation of the bull-market-ending till now, therefore, it is important to look for stocks which showing up stronger than rest market when considering something on the long-side which I showed with other stocks of other sectors in the previous analysis were some holding strong bullish above the EMA structure and other below it with incoming bearish signs, in this case, it is important to not averagely evaluate the whole market in just one direction which can be fatal in such market phases showing up these days as there are stocks profiting of the crisis while another struggle to hold the status quo.

In this manner, thank you for watching, support for more market insight, have a great day, and all the best to you!
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Information provided is only educational and should not be used to take action in the markets.

Comment:

ANALYSIS UPDATE: UNH has shown the potential to bounce within the point of control as well as within the all-time high support to continue with the important volatilites.