A look at UnitedHealth (UNH)

Question: Hey Steve, with XLV and the healthcare sector that we looked at last week…UNH being one of the main names your thoughts on it after so much noise? Thank you

UnitedHealth (UNH): Stalls at declining 40-WMA, posing tactical risk

UNH has rallied over 60% from its summer 2025 low but has stalled this week after testing its declining 40-week moving average (WMA) near 379-380. We view this as a tactical risk for UNH. If UNH stays above support near 327-326, the breakout from the double bottom off the spring and summer 2025 lows near 249-235 remains intact with upside potential to 405. The prior lows from late 2021 through early 2025 represent a major bearish breakdown zone that provides a formidable resistance for UNH from 436 to 450.

Chart notes

• Declining 26- and 40-WMAs, both absolute and relative, indicate that the rebound from the summer low is occurring within a bearish trading cycle.

• The recent turn lower in the 200-WMA, on both an absolute and relative basis, signals further weakening in UNH’s longer-term technical structure.

Chart 1: UnitedHealth Group (UNH) (top) and relative to the S&P 500 (bottom)