UnitedHealth Group (UNH) Shoots Higher From the Key Support Level

UnitedHealth Group (UNH) Shoots Higher From the Key Support Level

 Published: June 23rd, 2022

If the recession comes, it will provide a negative sentiment to healthcare insurance providers like UnitedHealth Group. On the other hand, the recent Covid-19 pandemic also opened a wake-up call to Americans. According to a recent report from Wall Street Journal, the current crisis could affect career and lifestyle changes at all levels of people.

In that sense, any expense in the health insurance sector would be critical, a sacrifice from the limited budget under the direst condition. On the other hand, the Pandemic has given us a lesson regarding how to cope with uncertainty.

Fundamentally, UNH has robust financial releases with a solid balance sheet position. Some analysts also disclosed its balance sheet position in a safe zone. In the income statement, the company showed good profitability where the current margin is 5.96%, better than its competitors.

Let’s see the future price direction from the UnitedHealth Group (UNH) Technical analysis:

UnitedHealth Group (UNH) Daily Chart

UnitedHealth Group (UNH) Daily Technical Analysis 23rd June 2022

In the UNH daily chart, the broader market trend is volatile, where the recent selling pressure from the 553.47 top reached the 445.89 support level with a corrective speed. However, bulls appeared in the market with strong momentum and formed an indecision candle on the daily demand zone. On the next day, a strong bullish daily candle appeared, eliminating all intraday selling pressure. Moreover, the most recent daily candle above the dynamic 20 EMA increased the bullish possibility toward the 526.00 resistance level.

The above image shows how the price trades above the dynamic 20 EMA resistance where the daily close above it is the primary sign of the possible bullish pressure. Moreover, in the indicator window, the Relative Strength Index (RSI) showed a rebound where the recent RSI level above the 50 area appeared with a trend line breakout. In that case, any buying pressure in the price from dynamic 20 EMA support will be influenced by the current RSI level.

Based on the daily structure, UNH has a higher possibility of extending the bullish pressure towards the 526.19 resistance level. In that case, any buying pressure from the dynamic 20 EMA level would boost the bullish possibility. On the other hand, bears should wait for the price to come below the 445.89 support level before aiming toward the 400.00 area.

UnitedHealth Group (UNH) H4 Chart

UnitedHealth Group (UNH) H4 Technical Analysis 23rd June 2022

According to the Ichimoku Cloud analysis, the current market structure of UNH is potent for bulls as the recent price showed a strong recovery above the dynamic Kijun Sen support. Moreover, in the future cloud, the Senkou Span A showed an upside pressure while the Senkou Span B remained flat. The Lagging Span is also closer to the price, indicating a bullish breakout.

The above image shows how the Traders Dynamic Index reached the upper barrier, indicating that bulls have reached the peak, and it may correct lower. However, bulls may come back any time as long as the TDI line remains above the 50 neutral lines. On the other hand, the dynamic Kijun Sen is working as a primary barrier to bears where the 473.67 level would be the primary flip zone.

Based on the current H4 structure, investors may experience a bearish correction as the price failed to hold a strong momentum above the Cloud resistance. In that case, the primary target of the bearish pressure is towards the 473.67 level. On the other hand, any bullish pressure from the dynamic Kijun Sen with a strong H4 candle would be a bullish sign in this instrument that may extend the momentum towards the 526.19 level.

UnitedHealth Group (UNH) H1 Chart

UnitedHealth Group (UNH) H1 Technical Analysis 23rd June 2022

According to the UNH intraday chart, the current price has become tricky as it faces selling pressure from the visible range high volume level. According to the current volume structure, the higher trading volume is at the 492.00 level from where the selling pressure is coming. However, the intraday high volume level is still below the price, while the dynamic 20 EMA is below the 482.00 static support.

The above image shows how the MACD Histogram remained stable above the neutral line, where any bullish rejection from dynamic weekly VWAP would be supported by the MACD. On the other hand, if bulls fail the price to hold above the 482.98 level, bears may regain momentum towards the 456.00 area.

Should You Try Buying UnitedHealth Group (UNH)?

Based on the current price action, UnitedHealth Group (UNH) has a higher possibility of extending the bullish pressure, although a minor bearish correction is pending. Therefore, investors should closely monitor how the price trades at the near-term support level on the intraday chart to find the highest potential bullish reversal point.

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