UNH: DOW30 Healthcare Value ReboundI've been researching stocks in the healthcare sector recently, and it seems that the places to put your money are into healthcare operators, hospital services, and medical facility REITs. United Healthcare got beaten down with the rest of the healthcare sector in late April. However, they rebounded in the other direction after their earnings call. I've been watching them to wait for a stronger trend to set in, and I believe the time is now. Volume spiked on earnings and has remained relatively flat since, so neither a drop or spike in volume is a good side that the buyers are holding and the sellers are having to be bid up to let go of their shares.
As for technicals, the price just popped above the 50 day moving average and the 20 day moving average shows a clear bottoming out and converging to overtake the 50 day. MACD has been weakly bullish in the histogram but just crossed positive, and this is confirmed with the holders sentient sloping upward and going positive. For trendedness, ADX is 17 showing that the old trend is long dead but a new one is still shaping up, but DI+ diverging from ADX and DI- shows that a new uptrend is brewing. RSI is sloping upward with the Friday and Monday above 50, so prices are out of oversold territory and rebounding but not yet oversold. Money flow continues to be positive, and the short interest is idling along showing that there's not a lot of confidence in betting against the stock.
Beyond the technicals, UNH is in a good position to weather this current bout of the trade war. They're primarily a domestic healthcare provider and operator, and they're going to benefit from the falling price in goods rather than be hurt by it. Demand for healthcare is fairly inelastic, and investors are going to seek shelter in service providers of various types with low risk exposure to selling goods or dealing with rising prices from import/export dynamics.
