UnitedHealth Stock Rallies 7.95% in Four Days as Technicals Signal Bullish Continuation

UnitedHealth Group (UNH) concluded the latest session with a 4.50% gain, marking its fourth consecutive advance and bringing the four-day rally to 7.95%. This analysis employs multiple technical frameworks to evaluate the stock's trajectory.
Candlestick Theory
Recent price action reveals a robust bullish momentum. The latest candle (July 1, 2025) formed a long-bodied white candle closing near its high ($326.02), indicating strong buying pressure after testing support near $311. Resistance is established at the July 1 high of $326.49, while the June 25 low of $299.8 anchors key support. The multi-day rally aligns with a "bullish continuation" pattern, though proximity to the $326.49 resistance warrants caution against profit-taking.
Moving Average Theory
Short-term moving averages (50-day ~$305, 100-day ~$320) suggest consolidation within an emerging uptrend. Crucially, the 50-day MA has crossed above the 200-day MA (~$490) — a "golden cross" signaling long-term bullish sentiment. The current price ($326.02) trading above all three averages reinforces strength, but divergence from the 200-day MA highlights ongoing recovery from the April 17 crash ($454 to $585).
MACD & KDJ Indicators
The MACD histogram shows strengthening positive momentum, with the signal line sustaining above zero since early June. Concurrently, the KDJ oscillator exhibits an overbought reading (K=85, D=82), historically correlating with short-term pullbacks. However, MACD’s upward trajectory suggests any dip may be corrective rather than a trend reversal. Divergence between overbought KDJ and steady MACD implies consolidation may precede further upside.
Bollinger Bands
Volatility expansion is evident as price pushes against the upper band ($328), following a July squeeze. This breakout suggests directional conviction. Historical parallels appear in the September 2024 and February 2025 expansions, which preceded sustained moves. Near-term targets align with the upper band if momentum persists, while a retreat could find support at the midline (~$310).
Volume-Price Relationship
Volume surged 61% on July 1 (16.2M shares) versus the prior session, confirming bullish conviction. Notably, advances throughout late June were backed by above-average volume, contrasting with the April sell-off on record volume (134M shares). However, recent volume remains below the May crisis peaks, suggesting the recovery may still face residual overhead supply near the $330 psychological level.
Relative Strength Index (RSI)
The 14-day RSI reads 72, crossing into overbought territory. While this may foreshadow consolidation, its breach of 70 coincided with prior sustained uptrends in November 2024 and March 2025. Current RSI divergence from price highs is absent, reducing reversal probability. A pullback toward neutral territory (40-60) would provide healthier entry conditions.
Fibonacci Retracement
Applying Fibonacci to the April–July decline (high: $585.04, low: $274.35) shows the price testing the 38.2% retracement ($415). This aligns with the March 2025 resistance zone ($420–$430). A sustained break above $415 would open a path to the 50% retracement ($430) and eventually the 61.8% level ($445). Confluence exists as this retracement cluster overlaps with the 200-day MA, highlighting its technical significance.
Confluence & Divergence
Confluence is pronounced near $310–$315 (50-day MA, Bollinger midline, and June swing highs), offering robust support. Resistance at $326–$330 harmonizes with the July 1 high and upper Bollinger Band. The primary divergence lies between overbought KDJ readings and the moderately overbought RSI versus sustained MACD momentum, signaling potential near-term consolidation within the broader recovery trend. Volume-backed upside suggests any pullback may be contained within the $310–$326 range before testing the $330 breakout threshold.