UNH Surges 4.67% as Technical Indicators Confirm Bullish Trend

UnitedHealth Group (UNH) has surged 4.67% in the latest session, extending its two-day rally to 5.11%. This sharp reversal from recent volatility suggests a potential short-term trend shift. The candlestick pattern shows a bullish engulfing formation on the second consecutive up day, with key support identified at the November 1st low of $323.03 and resistance at the December 3rd high of $341.41. The recent break above the 50-day moving average ($335.00 approx.) confirms a bullish bias, while the 200-day MA ($330.00 approx.) remains within the uptrend channel.
Candlestick Theory
The recent bullish momentum is reinforced by a strong "harami" reversal pattern following the November 17th low, with the December 3rd session forming a "piercing line" that suggests buying pressure has overtaken short-term sellers. Key support levels at $323.03 and $317.62 (November 24th low) align with Fibonacci 38.2% and 23.6% retracement levels from the October 28th low to the December 3rd high. Resistance remains at the 50-day MA and the psychological $340 level, where a breakout would validate the continuation of the uptrend.
Moving Average Theory
The 50-day MA is above the 200-day MA, confirming a bullish trend. The 100-day MA ($332.00 approx.) acts as a dynamic support level. A crossover of the 50-day MA above the 100-day MA in the coming days would strengthen the case for a sustained rally. However, the 200-day MA remains a critical threshold—any close below $330.00 could trigger a retest of the November 24th low.
MACD & KDJ Indicators
The MACD histogram has turned positive, with the line crossing above the signal line, indicating accelerating bullish momentum. The KDJ indicator shows %K at 82 and %D at 78, suggesting overbought conditions. While this may signal a near-term pullback, the absence of bearish divergence (price highs vs. oscillator lows) implies the uptrend remains intact. A break below the 200-day MA could trigger a bearish crossover in both indicators.
Bollinger Bands
Volatility has expanded, with the price hovering near the upper band ($341.41 on December 3rd). This suggests overbought conditions, but the bands have not yet contracted, indicating the trend is still in its early phase. A close above the upper band would confirm a new breakout, while a retest of the lower band ($317.62) could act as a short-term support.
Volume-Price Relationship
Trading volume has surged on the recent rally, with the December 3rd session recording 9.7 million shares traded—well above the 30-day average of 7.5 million. This validates the strength of the move. However, a divergence in volume during pullbacks (e.g., declining volume on lower lows) could signal waning momentum.
Relative Strength Index (RSI)
The 14-day RSI is at 72, nearing overbought territory. While this typically warns of a potential correction, the RSI has not yet formed bearish divergence. A close below 60 would confirm a short-term pullback, but a sustained move above 70 would suggest the uptrend remains intact.
Fibonacci Retracement
Key Fibonacci levels from the October 28th low ($358.63) to the December 3rd high ($341.41) include 38.2% at $333.00 and 50% at $330.00. A breakdown below $330.00 would target the 61.8% level at $327.00, where a bounce could reignite the uptrend.
Confluence and Divergences
The confluence of a bullish MACD, strong volume, and Fibonacci support at $330.00 suggests the stock is likely to consolidate in the $327–$335 range before resuming the uptrend. However, the overbought RSI and KDJ levels warn of a near-term pullback to test the 50-day MA. No significant divergence has emerged yet, but a failure to hold above the 200-day MA could trigger a broader correction.