UNH pushes through Thursday's high
UnitedHealth Group Incorporated (UNH) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, UNH ended the week 7.66% higher at 265.90 after gaining $4.74 (1.81%) today, outperforming the Dow Indu. (0.9%). Today's close at 265.90 marks the highest recorded closing price since February 22nd. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 261.69, United Health confirmed its breakout through the previous session high after trading up to $4.83 above it intraday.
Daily Candlestick Chart (UNH as at Jul 12, 2019):
Friday's trading range has been $4.89 (1.87%), that's slightly below the last trading month's daily average range of $4.92. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for UNH.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, UNH gained 0.60% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 248.28.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
With prices trading close to this year's high at 272.49, upside momentum could speed up should the share be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Its common bearish interpretation has been confirmed for UnitedHealth Group. Out of 62 times, UNH closed lower 58.06% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 61.29% with an average market move of -0.78%.