Indications Suggest NYSE:UNH Could Be on the Verge of a Breakout.

UNITEDHEALTH GROUP INC (NYSE:UNH) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:UNH.

Deciphering the Technical Picture of NYSE:UNH

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Taking everything into account, UNH scores 8 out of 10 in our technical rating. Although UNH is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• Both the short term and long term trends are positive. This is a very positive sign.
• UNH is part of the Health Care Providers & Services industry. There are 115 other stocks in this industry. UNH outperforms 75% of them.
• UNH is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so UNH is performing more or less in line with the market.
• When comparing the yearly performance of all stocks, we notice that UNH is one of the better performing stocks in the market, outperforming 74% of all stocks. However, this overall good ranking is mostly due to the recent strong move.
• In the last month UNH has a been trading in a tight range between 520.08 and 544.15.

Our latest full technical report of UNH contains the most current technical analsysis.

How do we evaluate the setup for NYSE:UNH?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:UNH scores a 8 out of 10:

UNH has an excellent technical rating and 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 541.22. Right above this resistance zone may be a good entry point.

Trading setups like NYSE:UNH

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

Our Breakout screener lists more breakout setups and is updated daily.

Keep in mind

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 observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.