December 5 Chart of the Day - UnitedHealth Group
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Our thoughts and prayers are with the family of UnitedHealth Group (UNH) CEO Brian Thompson who was fatally shot in Manhattan on Wednesday.
Today we'll feature the company's chart out of respect because it had recently made fresh all time highs (ATHs).
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Monthly Chart
On the monthly chart we can see that after setting its $630.73 ATH last month price fell and was down over 5% today on the tragic news.
It's not unusual for price to retreat back towards previous price structure after establishing new highs regardless on any news.
Now, with little to no previous price history at these levels price is going through what we like to call a "discovery phase" to create new structure. As traders we're limited to estimating potential upside targets using only price action tools Trend and Fibonacci as shared for free in our Trading All Time Highs webinar replay.
Weekly Chart
On the weekly chart we can see with much more clarity the sudden and about face price made this week.
Should price decide to continue falling to the downside it may want to revisit the $550 area.
One thing for sure, price rarely, if ever, moves in a straight line.
Only time will tell for sure what price will do next...
We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
Very nice speculation on UNH. Great info on the discovery phase. All correct. And the fibs look nice. Though the direction of the stock/company could continue to rise, my speculation is that it truly depends on the overall market, future economic events that can become a catalyst for a pivotal point in the trend either upwards or downwards due to holdings of large funds offloading or onloading shares. With upcoming data on a healthier America 🇺🇸 which may take a lot longer than 4 years to get, I see UNH climbing fibs grinding up, then leveling out sideways for a good long while (few weeks) before massive drops (24-36 months from now)