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UnitedHealth Faces Pressure Amid Underwhelming Q4 Results

UnitedHealth Group (UNH) experienced a significant decline in its stock price on Thursday, following the release of its fourth-quarter financial results, which fell short of Wall Street’s expectations. The company also provided a cautious outlook that reflected the impact of escalating medical expenses.

The health insurer maintained its projected outlook for 2025 but indicated that it anticipates a medical cost ratio (MCR)—the share of premiums allocated to medical care—of between 86% and 87% for the upcoming year. In comparison, the MCR was slightly above 82% in the first quarter of 2023, signaling a notable increase in costs for the company.

As a result of these developments, UnitedHealth’s shares saw a 6% drop, landing at $510.59. This downturn marks a nearly 20% decline from the stock’s peak in November, contributing to a year-over-year price change that shows little improvement, especially against the S&P 500’s 25% performance increase over the same period.

In this analysis, we explore the technical aspects of UnitedHealth’s stock chart and highlight critical price levels that investors should monitor following this earnings-related decline.

Resistance at the 200-Day Moving Average

After a rally beginning mid-December, UnitedHealth shares met resistance near the 200-day moving average. The stock suffered another dip on Thursday after multiple unsuccessful attempts by buyers to push the price above this significant technical benchmark. The volume of shares exchanged during this downturn was the highest recorded since the stock experienced its sharp decline last month, indicating potential for additional declines.

Given the waning momentum, it’s essential to identify key support levels to watch, along with potential upward resistance if the stock begins to recover.

Key Support Levels to Monitor

The primary support level to watch is around $475, a price point that aligns with a multi-month trendline connecting several troughs from September 2023 to December. If the stock price dips below this trendline, it could trigger further selling, possibly leading shares down toward the $436 area. This level may present a buying opportunity for investors, coinciding with a notable low from April 2024.

Potential Resistance Areas

In the event of a recovery in stock price, the $550 threshold should be closely observed. Investors might consider taking profits if the stock retests recent highs from this month, as this price aligns with historical resistance levels from as far back as November 2023.

Should the stock successfully break through this resistance, it may rise to approximately $605, where additional selling pressure could emerge, reflecting previous peaks just below the all-time high recorded in November.

The insights provided in this article are intended for informational purposes only. For more detailed analysis, please refer to the stated warranty and liability disclaimer.

As of the date this article was written, the author does not hold any shares in the above-mentioned securities.

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