UnitedHealth Group (UNH) has made it across our screen yet again, as the stock is looking to make a big move. UNH stands out among the rest of the healthcare stocks because of the relative strength it has among its peers. As many of you know, during a tech induced rally, much like the one we are in the middle of, healthcare usually trails the back of the pack.
While that may be true for the sector broadly speaking, it is not always true for every stock in the sector. After making a jump from below 450, UNH is now consolidation above that 500 mark with that marking a pretty strong level of support.
There are really two plays that are developing here for traders with one being a bit more likely than the other. In the more likely of scenarios, the stock could be consolidating before making a move higher. On the other hand, if the stock loses some steam here, watch for a break back below 500 for a shorter-term out play.
It is important to remember that we have FOMC coming up on Wednesday, July 26, which will cause some volatility in the market and will undoubtedly cause UNH to make a move. In any case, look for this 500 level to come into play and pay attention to price action taking it higher or lower before entering a trade.
