United Health Group has successfully found a bottom following a significant and sharp sell-off. This sell-off formed the first leg (orange wave A) of a major long-term corrective phase. The market is currently trading within a short-term recovery phase, forming orange wave B.
This recovery phase is not expected to be sustainable. We anticipate that the market will lose its momentum and form one final major sell-off within orange wave C, bringing the overall long-term correction to a close.
For the end of this current recovery phase, we have therefore defined a Fibonacci retracement zone where we expect the market to lose its short-term bullish momentum and flip towards bearish control.
Short Entry Levels:
- 50% at $432.72
- 61.8% at $479.45
- 78.6% at $545.98
Stop Loss: 1% above the zone at $551.57
With yesterday's gap up, United Health has already reached and activated this short zone — this zone is now officially active.
In the following, we expect the market to break below $381.00 and reach our long-term defined Fibonacci retracement zone.
Long Entry Levels:
- 61.8% at $240.73
- 78.6% at $134.90
Stop Loss: 1% below the zone at $133.55
This zone represents a long-term opportunity to buy and accumulate this stock at highly attractive prices.
Should anything happen with this stock, we will update you immediately.
Kind regards,
Monalytics
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