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TECHNICAL ANALYSIS


Aetna Health Insurance

05/07/14 12:38:43 PM
by Koos van der Merwe

After a severe winter that will go down in the history books, are tornadoes now the problem?

Security:   AET
Position:   Buy

The 2013-14 North American cold wave was an extreme weather event that extended from December 2013 to as late as April 2014. Temperatures fell to unprecedented levels and low temperature records were broken across the United States. With winter now over, devastating tornadoes with hail and flooding have hit large portions of the U.S. The number of deaths is still speculative with reports of 35 fatalities. Flash flooding warnings and tornado forecasts are continuing. Aetna (AET), an insurance company, is making it easier for members affected by the severe weather to refill prescriptions and access employee assistance. The company is extending claim and appeal times, and helping members who have evacuated find care outside their home areas.

Figure 1. Monthly chart with Elliott wave count.
Graphic provided by: AdvancedGET.
 
The chart in Figure 1 is a monthly chart and shows how the share price rose from a low of $5.22 in February 2000 to a high of $76.70 by March 2014. The RSI indicator is suggesting a correction to any one of the levels shown by the Fibonacci retracement targets shown on the chart.

Figure 2. Daily chart with Elliott wave count.
Graphic provided by: AdvancedGET.
 
The daily chart in Figure 2 shows an Advanced GET Elliott Wave count that is suggesting the share price is in a Wave 2 of a new bull trend. This is confirmed by the RSI indicator which gave a buy on April 22, 2014.

Figure 3. Omnitrader Daily chart showing Advisor rating.
Graphic provided by: Omnitrader.
 
The chart in Figure 3 is an Omnitrader chart with the Vote line suggesting a buy on April 30, 2014 based on the Red Green Strategy Long 6. Note that the TDIJak indicator and SI indicator have given a buy signal. The Advisor rating is 67, a strong rating suggesting that the price will rise to the upper external band.

I would be a buyer of AET at the present price but would keep my stops close.



Koos van der Merwe

Has been a technical analyst since 1969, and has worked as a futures and options trader with First Financial Futures in Johannesburg, South Africa.

Address: 3256 West 24th Ave
Vancouver, BC
Phone # for sales: 6042634214
E-mail address: petroosp@gmail.com

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