UnitedHealth (UNH) Share Price Rebounds
A month ago, in our analysis of the UNH chart, we:
highlighted that UnitedHealth shares had lost nearly 23% in value;
drew a descending channel and suggested that bearish pressure could continue, threatening the support level around $450, which had held since early 2022.
Since then, UNHs stock price decisively broke below that level (as marked by the arrow), falling to around $250 its lowest point since spring 2020 before staging a sharp rebound. This steep price movement was driven by a series of fundamental developments, including:
the resignation of the CEO and news of a Department of Justice investigation into potential Medicare fraud;
UnitedHealth withdrawing its earnings guidance for the coming year;
political debates over the Medicaid programme as part of the 2025 budget negotiations;
President Trumps directive to cut prescription drug prices.
Recent news that the new CEO and several top executives have bought tens of millions of dollars worth of UNH shares appears to have renewed investor confidence the share price rose above the $300 mark yesterday.
Technical Analysis of UNH Share Chart
These latest developments justify an update to the descending channel configuration. Of particular note is the gradual decline with limited volatility a sign that the price is moving along the channel's median line (highlighted on the chart).
In this setup:
the bounce from the $250 level points to the lower boundary of the channel;
traders may consider a scenario where the current recovery pushes UnitedHealth stock towards the median, after which supply pressure may return and offset the recent dominance of demand.
Its also possible that the key psychological level of $300 could now act as support.
Read more: https://fxopen.com/blog/en/oa-unitedhealth-unh-share-price-rebounds/
Text source: Forex Trading Blog
