UNH breaks back above 50-day moving average
UnitedHealth Group Incorporated (UNH) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, UNH finished the month -3.25% lower at 294.95 after gaining $5.19 (1.79%) today, outperforming the Dow Indu. (0.85%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 292.28, United Health confirmed its breakout through the previous session high after trading up to $4.17 above it intraday.
Daily Candlestick Chart (UNH as at Jun 30, 2020):
Tuesday's trading range has been $8.79 (3.05%), that's slightly below the last trading month's daily average range of $9.52. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for UNH. Prices continued to consolidate within a tight trading range between 285.57 and 297.10 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
UnitedHealth Group managed to close back above the 50-day moving average at 292.59. When this moving average was crossed above the last time on June 25th, UNH actually lost -3.15% on the following trading day. After spiking up to 296.45 during the day, the market found resistance at the 20-day moving average at 295.52. After having been unable to move lower than 286.62 in the prior session, the stock found buyers again around the same price level today at 287.66.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 299.28 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 285.82 where further sell stops could get triggered.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for UnitedHealth Group. Out of 49 times, UNH closed higher 59.18% 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 75.51% with an average market move of 1.81%.