UNH can start DCA investment Strategy.

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18 May 2025

UnitedHealth Group (UNH) – Oversold & Attracting Insider Confidence

UNH has recently drawn attention after its stock price dropped over 50% since mid-April 2025. Putting aside the fundamental and media noise, the technical analysis shows that the stock is heavily oversold.

Last Friday, the stock rebounded over 6%, possibly driven by a strong show of confidence from insiders. Newly reinstated CEO Stephen Hemsley purchased approximately $25 million worth of UNH shares (86,700 shares at an average of $288.18). CFO John Rex also acquired $5 million, with directors Timothy Flynn and Kristen Gil making significant purchases as well.

From a price action standpoint, the current level appears attractive for a Dollar-Cost Averaging (DCA) approach. However, I'm personally eyeing a potential deeper discount entry zone between $200–$220, which would offer an even more compelling long-term risk-reward setup.

Strategy: Start small with DCA at current levels, but be patient for deeper dips for larger entries.

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