The Key Takeaways
- UnitedHealth’s shares fell Thursday, after it reported results for the fourth quarter that were below Wall Street expectations. It also issued an unimpressive outlook due to higher medical costs.
- After several failed bull attempts to close above this closely monitored indicator, the stock fell today due to earnings.
- Investors should watch key support levels on UnitedHealth's chart around $475 and $436, while also monitoring important overhead areas near $550 and $605.
UnitedHealth Group’s (UNH), shares plunged sharply on Thursday, after it reported results for the fourth quarter that were below Wall Street expectations. It also issued an unimpressive outlook due to higher medical costs.
The company, which kept its 2025 outlook unchanged, said it expects a medical cost ratio (MCR)—the percentage of premiums spent on medical care—of 86% to 87% this year. In comparison, MCR for the insurer was just over 82% during the first quarter 2023.
UnitedHealth shares were the biggest decliners on the S&P 500 on Thursday, falling 6% to $510.59. The stock, which is down nearly 20% from its record high set in November, is virtually unchanged from a year ago, while the S&P 500 has gained 25% in the last 12 months.
We break down UnitedHealth’s technical chart below and highlight key price levels investors should be monitoring after UnitedHealth’s recent earnings-driven fall.
At 200-day Moving Average, Sellers are Reemerging
UnitedHealth shares fell today after rallying off their December lows. Bulls failed to break above this closely-watched indicator.
The stock has been moving sharply lower since last month. This means that further declines are possible.
In the face of a weakening momentum in prices, we’ll identify key levels for monitoring. But, also, important areas overhead are worth monitoring if and when this downtrend ends.
The Key Support Levels Monitor
Around $475 is the first level below which to keep an eye. The location of this area could be a significant source of support. It is near the multi-month trendline connecting multiple troughs in the chart from September 2023 to December last year.
Investors may be looking for opportunities to buy shares in the $436 region, which is near the April 2024 high.
Above-Head Areas to Be Watched
Investors will first watch for a rally that is counter-trend. They should then look at the $550 price level. Investors might consider locking in their profits when the stock retests its high of last month, as it closely matches a series of price points similar to those on the chart that stretch back until November 2023.
The shares could reach around $605 if they break through this resistance. However, the price may fall near the peaks just below their all-time peak (ATH), which was in November of last year.
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According to the article, as of its date of publication, the author did not possess any of these securities.
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