Is UNITEDHEALTH GROUP INC Ready to Break Out of Its Range?

We've identified UNITEDHEALTH GROUP INC (NYSE:UNH) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NYSE:UNH for further developments.

What is the technical picture of NYSE:UNH telling us.

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Taking everything into account, UNH scores 8 out of 10 in our technical rating. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, UNH is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• UNH is one of the better performing stocks in the Health Care Providers & Services industry, it outperforms 84% of 116 stocks in the same industry.
• UNH is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so UNH slightly outperforms the market at the moment.
• UNH is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• When comparing the yearly performance of all stocks, we notice that UNH is one of the better performing stocks in the market, outperforming 78% of all stocks. However, this relatively good performance is mostly due to a recent big move.

Check the latest full technical report of UNH for a complete technical analysis.

Looking at the Setup

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:UNH currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, UNH also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 545.96. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 529.34, a Stop Loss order could be placed below this zone.

How to trade NYSE:UNH?

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

More breakout setups can be found in our Breakout screener.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.