UnitedHealth Group (UNH) — This diversified health and well-being company provides health care coverage and benefits services and information and technology-enabled health services. In mid-April, the company reported first-quarter earnings of $1.10 per share, one cent ahead of estimates, and reaffirmed guidance of $5.40 to $5.60 for 2014, up from $5.50 in 2013.
UNH is in a bull market with major support at its intermediate trendline and 200-day moving average. The round of profit-taking in April was accompanied by two days of high-volume exhaustion selling, followed by two weeks of consolidation.
MACD flashed a buy signal on Wednesday, and my proprietary internal indicator, the Collins-Bollinger Reversal (CBR), flashed a buy on Monday. The stock jumped 3.5% Wednesday, closing a small gap at $76.65 $77.47. Buy UNH at $76.50 for a trade to $82. Longer-term buyers could earn a much higher return.