UNH rallies, gaining $8.17 (2.83%) within a single day on high volume
UnitedHealth Group Incorporated (UNH) Technical Analysis Report for Jan 15, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, UNH finished Wednesday at 296.41 surging $8.17 (2.83%) on high volume, significantly outperforming the Dow Indu. (0.31%) following today's earnings report. This is the biggest single-day gain in over two months. Today's close at 296.41 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session.
Daily Candlestick Chart (UNH as at Jan 15, 2020):
UNH is set to report earnings on Wednesday. For the upcoming report, analysts expect the company to have earned $3.73 per share. The company's last earnings report was released on Oct. 15, 2019, when UnitedHealth Group Incorporated reported earnings of $3.88 per share surpassing market expectations by 2.6%.
Wednesday's trading range has been $10.62 (3.67%), that's far above the last trading month's daily average range of $4.68. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for UNH.
Two candlestick patterns are matching today's price action, the Bullish Belt-hold and the White Candle which are both known as bullish patterns. The last time a Bullish Belt-hold showed up on August 5, 2015, UNH actually lost -1.52% on the following trading day.
The stock managed to close back above the 20-day moving average at 292.94.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 300.00 is within reach and we could see further upside momentum should the market manage to break out beyond.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Belt-hold" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for UnitedHealth Group. Out of 3 times, UNH closed lower 100.00% 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 100.00% with an average market move of -4.51%.