Watch These UnitedHealth Stock Price Levels After Earnings-Driven Surge

UnitedHealth Group (UNH) shares surged much than 6% connected Tuesday aft nan wellness security elephantine topped Wall Street’s quarterly net estimates and maintained its full-year profit outlook, helping to easiness investors’ concerns complete nan financial effect of a February cyberattack connected 1 of its subsidiaries. The banal was nan apical gainer connected nan Dow Jones Industrial Average, which soared to a grounds high connected Tuesday.

Below, we return a person look astatine UnitedHealth’s weekly chart and usage technical analysis to place cardinal floor plan levels to watch retired for.

Trading Range Breakout Looms

UnitedHealth shares person oscillated wrong a trading range since January 2022, helping to found intelligibly identifiable support and guidance areas. 

The banal concisely collapsed beneath nan range’s little trendline and 200-week moving mean (MA) in early April, but promptly closed backmost successful nan scope connected above-average volume to corroborate a bear trap. Such a shape arises from a deficiency of sustained trading momentum and tin beryllium seen arsenic a deceptive awesome that tricks investors into trading aliases opening short positions prematurely.

More recently, shares successful nan Dow constituent person consolidated conscionable beneath nan 50-week MA since mid-June, but staged a decisive adjacent supra nan parameter connected Tuesday aft nan company’s better-than-expected quarterly results.

Although nan value grounded to break retired supra nan trading range’s apical trendline yesterday, it whitethorn make different effort successful upcoming trading sessions fixed nan banal has ample room to move higher pinch a relative spot scale (RSI) reference good beneath overbought levels.

Monitor This Price Level Amid Further Buying

As there’s constricted overhead value action to analyze, we tin usage nan measuring principle to forecast a imaginable price target if nan value continues its upward momentum.

To do this, we cipher nan region betwixt nan range’s precocious and little trendlines successful points and adhd that magnitude to nan apical trendline. For example, we adhd $98 to $553, which projects a target of $651. 

Key Rangebound Levels to Watch

If nan banal remains rangebound, investors should oculus 2 cardinal value levels wherever it would apt pull support.

The first area sits astir astatine nan midway constituent of nan scope astir $500, a location connected nan floor plan wherever buyers whitethorn comprehend worth adjacent nan 50-week MA and a horizontal line that connects a bid of peaks and troughs complete nan past 2 and a half years.

Finally, a adjacent beneath this level could spot nan shares revisit nan $455 area, wherever they would apt brushwood important support adjacent nan trading range’s little trendline.

UnitedHealth shares were up 0.6% astatine $552 successful premarket trading Wednesday astir 2 hours earlier nan opening bell.

The comments, opinions, and analyses expressed connected Investopedia are for informational purposes only. Read our warranty and liability disclaimer for much info.

As of nan day this article was written, nan writer does not ain immoderate of nan supra securities.