Sunday, April 12, 2015

UnitedHealth Group ($UNH): The anatomy of buying into a strong stock

$UNH is one of the top performing Dow stocks.  Analyzing the stock over multiple time periods will help determine an entry point.

Weekly Chart

The weekly chart is clearly bullish and $UNH is up 18% year-to-date and 51% for the 1-year period.

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Daily Chart

The daily chart reveals sideways trading around $119 which is where it closed on April 10. At first glance this may seem like a buying opportunity since price is slightly above support at about $118.  So, it seems like a small pullback in a major uptrend which suggests a buying opportunity.

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Hourly Chart The hourly chart reveals a tight trading range and confirms resistance at $119. This suggests that we should wait until $UNH breaks resistance before entering a trade. Visit StockCharts.com to see more great charts.

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