UnitedHealth Group Inc. (NYSE:UNH) – Technical Analysis

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Dallas, Texas 04/21/2014 (FINANCIALSTRENDS) –  UnitedHealth Group Inc. (NYSE:UNH) on the daily chart has broken below all important support zones. The stock has seen a massive uptrend in the last year and post hitting an intra-day high of  $83.32 the stock has seen massive selling pressure which has made the stock fall below the very important support zone of $77.14 and also fall below its 50 day moving average currently at $77.38. The stock currently trades menacingly between the 50 day and the 200 day moving average and saw a downward price momentum on the back of very good volumes.

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The momentum indicators for UnitedHealth Group Inc. (NYSE:UNH) have given a clear sell and we are currently witnessing massive price and volume action. The relative strength index for the stock are also following the momentum indicators and have given a sell signal and have moved into the bearish territory with no signs of bouncing back from current levels. We believe if the stock breaks below its 200 day moving average it can fall towards the $70 level which is the next area of support for the stock.

On the weekly charts for UnitedHealth Group Inc. (NYSE:UNH) the stock has broken below the support zone at $77.18 and we believe that we can see the stock fall towards the 50 day moving average which currently stands at $71.21 as both the momentum indicator and the relative strength index for the stock have given sell signals which is very bearish for the stock going forward.

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(Figure): Daily chart for UnitedHealth Group Inc. (NYSE:UNH)

Latest Buzz:

UnitedHealth Group Inc. (NYSE:UNH) announced a drop in their first quarter profit which went against street estimates and traders sold their holdings due to the bleak outlook given by the management.  The only positive that the street is working with is the dividend yield for the stock.

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