UnitedHealth Rebounds 4.16% Amid Technical Signals Of Trend Inflection

UnitedHealth Group (UNH) rose 4.16% for two consecutive days, gaining 5.56% over the past two sessions, closing at $251 on August 5, 2025. This rebound follows a significant drawdown from the April 2025 peak above $585, with recent price action indicating potential trend inflection.
Candlestick Theory
The August 5 session formed a strong bullish candle after the previous day’s hammer-like pattern near $237 – a critical reaction level that aligns with the July 19 low of $269. This two-day bullish engulfing pattern suggests buyer conviction following the August 1 bearish gap. Key resistance emerges near $266 (July 30 high) and $272 (July 29 peak), while support holds at $237. The April 17 breakdown candle ($454 close after $585 open) remains a dominant bearish landmark, establishing the $450-$460 zone as major resistance.
Moving Average Theory
The 50-day MA has crossed below the 100-day MA, confirming an intermediate bearish structure. However, the current price at $251 sits above the 200-day MA (approximately $415), maintaining a longer-term uptrend framework. A sustained break above the descending 50-day MA (near $260) would be needed to signal near-term trend reversal potential.
MACD & KDJ Indicators
MACD shows a bullish convergence: the histogram turns positive as the signal line hooks upward from oversold territory, suggesting waning downward momentum. KDJ echoes this shift with K-line (34) and D-line (29) rising from oversold extremes below 20. Both oscillators align in suggesting the selling pressure may be exhausting, though confirmation requires KDJ to breach 50 and MACD to sustain above zero.
Bollinger Bands
Price rebounded from the lower Bollinger Band ($238) while volatility expanded significantly – band width increased 30% during the August sell-off. The current close at $251 sits near the middle band (20-SMA at ~$250), hinting at consolidation. A decisive move above $260 (upper band) would indicate bullish momentum resumption.
Volume-Price Relationship
The August 1 sell-off recorded the highest volume (39.9M shares) in three months, validating the breakdown below $250. However, subsequent gains occurred on diminishing volume, raising sustainability concerns. Volume must expand on upward moves toward $260 to confirm buyer commitment.
Relative Strength Index (RSI)
Daily RSI (14) rebounded sharply from 28 (August 1) to 46 – exiting oversold territory but remaining below the neutral 50 threshold. This warns against premature bullish confirmation. Weekly RSI at 35 still reflects intermediate bearish momentum, requiring a break above 50 to support trend reversal prospects.
Fibonacci Retracement
Applying Fib levels to the April 17 high ($585) and recent August 1 low ($235), the 38.2% retracement sits at $336 – well above current price. More relevantly, the 23.6% level at $269 coincides with the July support cluster. A decisive break above this resistance would open the path toward the 50% level ($410) while failure may retest the $235 low.
Confluence & Divergence Observations
Confluence of bullish signals appears at the $235-$240 support zone: hammer candle, MACD/KDJ convergence, and Bollinger Band bounce. Divergence emerges between improving daily momentum (rising MACD/RSI) and still-negative volume confirmation. The 200-day MA ($415) remains distant overhead resistance, while a close below $237 would invalidate the nascent rebound thesis and expose the $200 psychological level.