Healthcare Stocks That Could Rally: UnitedHealth Group (UNH)
Click to Enlarge Diversified healthcare company UnitedHealth Group (UNH) rallied more than 3% last Friday to break out of a tight, eight-day consolidation range that took place right atop its 200-day simple moving average (red). UNH stock hadn’t touched its 200-day SMA since March 2013, thus a retest was overdue.
More importantly, however, was that Friday’s rally resulted in the stock not only breaking out of the tight consolidation range, but also out of a bull flag pattern (black parallels), all of which resulted in UNH stock overcoming its 50- and 100-day SMAs.
UnitedHealth now has better upside momentum, which could move the stock back toward its early January highs, and eventually to new all-time highs.
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Learn more about the strategies Serge Berger uses to create profits in the market every day. Download his trading plan in the Essence of Swing Trading e-book by clicking here. As of this writing, he did not hold a position in any of the aforementioned securities.