Humana’s Golden Cross Points to Healthy Returns for Traders

Formation preceded by possible selling climax, followed by MACD buy signal

   
Humana’s Golden Cross Points to Healthy Returns for Traders

Humana (NYSE:HUM) — This huge managed health care company provides a broad range of services to over 12 million individuals. Because of its diversity and financial stability, analysts believe it’s capable of benefitting from the new health care reform law.

S&P estimates operating earnings per share (EPS) will increase to $7.90 in 2013, up from $7.47 in 2012, and looks for $8.50 in 2014. Analysts’ consensus median target is $86, and HUM pays a dividend of $1.04 for a 1.5% yield.

The stock’s all-time high was made in January 2012 at over $96. After six months of declining, it bottomed at just under $60 in July, and proceeded to form a bull channel with current support at $67 and resistance at $81 (the bearish resistance line).

In late February, the 50-day moving average crossed above the 200-day moving average triggering a golden cross, which usually results in a long-term change of trend from negative to positive. The cross was preceded by a possible selling climax in mid-February, and it was followed by a MACD buy signal on Wednesday.

Buy HUM for a trade to $81. Long-term investors may benefit from a bull market reversal with a target near its old high of $95.

03 14 12 hum 300x199 Humanas Golden Cross Points to Healthy Returns for Traders
Click to Enlarge

chart key 300x84 Humanas Golden Cross Points to Healthy Returns for Traders


Article printed from InvestorPlace Media, http://investorplace.com/2013/03/trade-of-the-day-humana-nyse-hum-2/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.