As Another Healthcare Stock Crosses Our Radar⎯Will It Rip Or Dip?
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Our last trade was a bearish call on a healthcare stock, which is a great lead in to our trade idea for today, Thursday, July 20, 2023. UnitedHealth Group (UNH), recently made a massive move on the back of an earnings report that Wall Street seemed to really like.
After the report was announced, the stock went on to rise by around $70. However, this bullish earnings report may not be enough to get it through the resistance ahead, even if it presents merely a temporary speed bump for the stock’s price.
As we noted in our last trade breakdown article, while the overall market is being led higher by the tech sector, other sectors may suffer and actually move in the opposite direction, or worse, sideways.
If UNH gets up to that upper trendline of resistance, we could be looking at lower prices if only back down to the 500 mark. It would take a very healthy move to the upside to take out that level of resistance and put us back on the path toward higher prices.
However, this pullback could be good for the move higher if we are able to get it. Look for a short entry as close to that resistance as you can get with a stop just above the high of this trend. If we pull back to 500, long positions could come back into play.
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