If Healthcare Rises Again - $UNH watch across timeframes
Updated
Shown here on a daily line chart, it is easy to see that price will begin a new ascent to 550-600 if the yellow downtrend line is broken. Clear bullish divergence is seen between RSI and price (green segments). Moving averages are 200 purple, 50 light blue, 20 blue. Analysts still have 580+ price targets for this stock and, while they could be wrong, healthcare is still a major sector holding of many ETFs.
Higher timeframe charts, shown below, add support for a possible turn up in stock price. For now, it seems a possible market downturn in March may coincide with price rebounding from the 20ma on the monthly chart, and it would follow a series of red candles. This would result from investors moving money into the defensive healthcare sector. On the weekly, RSI has come down to 35, which may serve as bull support if price is to rise again. Weekly stochastic %D may soon turn up, but there may be one more low close that would correspond with a %K drop before it truly rises.
Higher timeframe charts, shown below, add support for a possible turn up in stock price. For now, it seems a possible market downturn in March may coincide with price rebounding from the 20ma on the monthly chart, and it would follow a series of red candles. This would result from investors moving money into the defensive healthcare sector. On the weekly, RSI has come down to 35, which may serve as bull support if price is to rise again. Weekly stochastic %D may soon turn up, but there may be one more low close that would correspond with a %K drop before it truly rises.
Note
Weekly chart shows price can rise to moving average, then it would have to break 540-550 highs to start a new run. If market defense is not needed, then UNH goes to 425.Note
Yellow arrows are placed between March-April candles. Notice a pattern?Depending on February close, UNH has 3-4 red months. It looks more likely that price will rise in March. This fits with stochastic %K rising for 1-2 months to revert back to %D.
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