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October 16 Chart of the Day - Humana

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Humana's (HUM) website states they're a leader in healthcare.  I've always perceived them to be an insurance company rather than a provider.  But that's just me and when looking at a chart it really doesn't matter to me what the company does or what I think they do.

On the monthly chart we can see price has been making higher highs and higher lows for over a decade. In price action technical analysis terms we call this an uptrend.

But how long can this pattern stay in place?  Quite simply as long as it wants to.

Down on the weekly chart we can see that price has retreated from its $571.30 all time highs (ATH) made about a year ago.

Price made a higher low around $423 this past summer and was trading at $522 today.

Targets for this current run could be in the $540 area before deciding whether to continue upwards or take a breather.

Price seems to have broken out from some recent structure but if that turns out to be a false breakout then some downward targets could be in the $490-ish area as identified with fibonacci retracement levels, trend, and support/resistance.

Should price decide to retrace even further we can see a zone of interest between $440 and $460.

So the question remains, can price continue upwards and possibly set new all time highs or is this the time the trend breaks down?

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.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

Take a look at the charts and let us know what you think.  

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