Key Takeaways
- UnitedHealth shares dropped practically 5% Thursday after the medical health insurance big confirmed that it’s the topic of a Division of Justice investigation.
- After briefly consolidating in June, UnitedHealth shares have resumed their sturdy downtrend on rising quantity this month, a transfer that has coincided with the 50-week shifting common crossing under the 200-day shifting common to type an ominous “dying cross.”
- Traders ought to watch key help ranges on UnitedHealth’s weekly chart round $250 and $215, whereas additionally monitoring overhead areas close to $325 and $368.
UnitedHealth Group (UNH) shares tumbled Thursday after the medical health insurance big confirmed that it’s the topic of a Division of Justice investigation.
The corporate mentioned it’s complying with formal felony and civil requests from the DOJ, a growth that follows months of experiences that the company is investigating UnitedHealth’s billing practices in its Medicare Benefit program.
Since setting their April excessive, UnitedHealth shares have misplaced greater than half their worth, with experiences of federal scrutiny compounded by a downgraded revenue forecast earlier this 12 months and the departure of the corporate’s CEO. Trying forward, buyers can be awaiting updates on the DOJ probe and the corporate’s monetary efficiency when UnitedHealth experiences earnings earlier than the market opens subsequent Tuesday.
UnitedHealth shares fell practically 5% on Thursday to $278.58, their lowest closing degree since mid-Might. The inventory is the weakest performer within the Dow Jones Industrial Common in 2025.
Under, we take a more in-depth have a look at UnitedHealth’s weekly chart and level out worth ranges that buyers will doubtless be watching.
Downtrend Resumes After Temporary Consolidation
After briefly consolidating in June, UnitedHealth shares have resumed their sturdy downtrend on rising quantity this month, a transfer that has coincided with the 50-week shifting common (MA) crossing under the 200-day MA to type an ominous “dying cross.”
Whereas the relative energy index confirms bearish worth momentum, it additionally flashes oversold situations, doubtlessly attracting discount searching within the inventory.
Let’s find two key help ranges to observe on UnitedHealth’s chart if the shares preserve trending decrease and likewise determine overhead areas value monitoring throughout future restoration efforts within the inventory.
Key Help Ranges to Watch
The primary decrease degree to observe sits round $250. This space might present help close to the Might sell-off low, which intently aligns with a variety of corresponding worth motion on the chart stretching again to early 2018.
Promoting under this key degree opens the door for a retest of decrease help close to $215. Traders may search for long-term shopping for alternatives on this location near a horizontal line that hyperlinks a collection of troughs on the chart from November 2017 to September 2019.
Overhead Areas Price Monitoring
Throughout restoration efforts within the inventory, buyers ought to initially monitor the $325 space. The worth might encounter promoting strain on this area close to final month’s excessive, which strains up with a pullback to the 50-week MA in February 2021.
Lastly, a profitable breakout above this space may gas a transfer towards $368. Those that have collected UnitedHealth shares at decrease ranges may even see this as an acceptable location to lock in earnings close to the November 2020 and January 2021 peaks throughout an prolonged uptrend within the inventory.
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