DOUBLE BOTTOMS

UnitedHealth Group Looking Healthy

12/23/08 02:17:39 PM

by James Kupfer

Shares of UnitedHealth have moved up nicely in recent weeks, a trend that seems likely to continue.

Security: UNH
Position: N/A

After putting in a double bottom in November 2008, shares of UnitedHealth Group (UNH) have moved up sharply. While caution is warranted, there are a number of positives that indicate a further price advance is likely.

First, UNH put in a double-bottom formation. Second, it broke out of a long-term downward-sloping trendline (blue line). Third, there is a positive relative strength index (RSI) divergence on the stock. RSI is sloping up and has made new highs as compared to the stock's October highs, as shown in green in the RSI pane.

FIGURE 1: UNH, DAILY. UNH recently broke above the blue downward trendline.

Graphic provided by: Wealth-lab.

On the downside, UNH has now hit right up against a minor Fibonacci resistance level at 23%. Assuming UNH can move higher past this level, $31.50 would be the first target.

James Kupfer

Mr. Kupfer is a market professional and amateur stock market commentator. Disclosure: It is likely that Mr. Kupfer has or will enter a position in any security he writes about.

Click here for more information about our publications!

Comments

Date:�12/30/08Rank:�5Comment:�Very clear.

PRINT THIS ARTICLE

Comments or Questions?	Article Usefulness
	5 (most useful) 4 3 2 1 (least useful)

DOUBLE BOTTOMS

UnitedHealth Group Looking Healthy

Comments

SUBSCRIBE TO OUR FREE EMAIL NEWSLETTER!

SUBSCRIBE TO OUR FREE
EMAIL NEWSLETTER!