Healthcare Stocks That Could Rally: Humana (HUM)
Click to Enlarge First up is one of the largest U.S. healthcare companies; Humana (HUM). On the weekly chart, HUM stock is holding onto its 2009 uptrend line. More importantly, since September of last year, Humana has consolidated its 2012-13 gains around the 2007 resistance line.
On the momentum side, oscillators such as the RSI have more work to do — they are slowly turning back up, but they also have a trend of lower highs since 2011 to overcome.
Click to Enlarge On Feb. 5, HUM stock gapped lower after Humana’s earnings report but quickly bounced off its 200-day simple moving average (red line). After more than a week of consolidating sideways, HUM stock saw healthy follow-through buying last Friday that now leaves shares right at the diagonal resistance line dating back to early December of last year.
Humana also held its lateral blue line as support, and given the step-by-step rally over the past two weeks, HUM stock now looks like a promising bet to move back toward its early-December highs.