UNH, United Healthcare.

UNH Aug 5 2013unh aug 5 2013 s

United Healthcare has a tendency of being very persistent in whatever direction it happens to be going. That makes it a dangerous stock to call a turn on. This time it looks like there is sufficient evidence to do so. The stock has managed to re-enter the original channel that it had been in years ago and has had an impressive run since the lows of ‘09. Furthermore it has a very plausible 5-wave wave count from that bottom. Two different triangles add confidence to this count. The first is wave 4 of 3 of 5 and the second one wave 4 of 5, so they are of different degrees. Next wave 5 of 5 is a 5-wave sequence in which the minor wave 5 is extended. The stock is now trading above the upper trend line of the 5th wave, normal in a “throw over”. The RSI is already not confirming the (much) higher stock price. This one we would put in the category of right-or-wrong-but-never-in-doubt as a sell, right away.