May 13 Chart of the Day - UnitedHealth Group
Highly precise price action technical analysis offers the strongest trading edges and the most opportunities across the markets, making it the foundation of our reviews.
UnitedHealth Group (UNH) announced that CEO Andrew Witty has stepped down, with former CEO and current Chairman Stephen Hemsley returning to lead the company.
In addition, the company suspended its full-year financial guidance, citing higher-than-anticipated medical costs.
The combination of leadership uncertainty and rising expenditures triggered a sharp market reaction—shares fell more than 18% on the day and are now down nearly 50% from their all-time high set last year.
Let’s take a price action technical analysis look the chart to see where price could be heading next.
Consistent profitable investing and/or trading requires a structured, rules-based approach to price action analysis. Proven processes, disciplined risk-reward management, and precise execution create the foundation for long-term success.
When combined with powerful mental performance strategies, this method becomes the ultimate blueprint for thriving in any market, on any time frame.
As requested, this analysis will take a price action technical analysis approach to assess key levels and potential next price moves for this chart.
Since May 2023, we've showcased over 500+ Charts of the Day and provide FREE Price Action Trading education to traders who join our highly rated Trade Room.
Monthly Chart
On the monthly chart, price tagged an all-time high at $630.73 last year before breaking down hard—slicing through multiple support zones and likely fueling analyst hesitation on forward targets.
While there are more possible supports below the best chance for the bulls may quickly be approaching in the $290 area.
This kind of movement highlights why a cautious and well-informed approach is essential when evaluating a stock’s short to mid term outlook.
Weekly Chart
On the weekly chart, we can see with much more clarity the rapid fall and relentless selling pressure.
Price is approaching a multi-year trend line and a previous major support/resistance level where price could possibly react.
Only time will tell for sure what price will do next...
It goes without saying though, the only guarantee in the markets is that price cycles. It cycles up and it cycles down across all time frames and all charts and rarely, if ever, moves in a straight line.
We’ve combined Fibonacci levels with key support/resistance zones and trend analysis to pinpoint potential price levels of interest and future targets.
With precision-focused charts like these, both traders and investors can confidently build and execute their strategies.
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.
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