UNH closes lower for the 2nd day in a row
UnitedHealth Group Incorporated (UNH) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, UNH finished the week 3.31% higher at 298.78 after losing $3.42 (-1.13%) today on low volume, strongly underperforming the Dow Indu. (-0.09%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 300.14, the share confirmed its breakout through the previous session low after trading up to $2.83 below it intraday.
Daily Candlestick Chart (UNH as at Feb 14, 2020):
Friday's trading range has been $6.66 (2.2%), that's slightly above the last trading month's daily average range of $6.46. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for UNH.
Even with a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on February 7th, UNH lost -0.76% on the following trading day.
Prices are trading close to the key technical support level at 295.88 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for UnitedHealth Group. Out of 509 times, UNH closed higher 55.40% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 64.83% with an average market move of 1.44%.