UnitedHealth Stock Rises 4% With Bullish Technicals Targeting 326.55 Resistance

Candlestick Theory
UnitedHealth Group's recent price action exhibits a bullish three-white-soldier pattern, confirmed by consecutive higher closes with progressively larger real bodies on September 4–8. This signals strong buying momentum following a consolidation phase near the $300 psychological support, which held firm during late August tests. Resistance emerges near $322 (recent September 8 high), while major support remains at $295–$300 – a zone reinforced by the August 26 and 29 reaction lows. The absence of long upper shadows in the latest candles suggests limited overhead supply.
Moving Average Theory
The moving average structure confirms a bullish bias. Current price ($320.25) trades above rising 50-day, 100-day, and 200-day moving averages, indicating robust trend strength. Significantly, the 50-day MA recently crossed above both the 100-day and 200-day MAs (golden cross pattern), typically preceding extended uptrends. The ascending 50-day MA near $308 now acts as dynamic support, while the 200-day MA near $290 provides long-term foundational support.
MACD & KDJ Indicators
Momentum indicators show bullish alignment with nascent overbought risks. The MACD histogram has expanded positively for eight sessions, confirming accelerating upward momentum as the signal line diverges bullishly. KDJ readings (%K: 84, %D: 78) indicate overbought territory but without bearish crossover – typical in strong trending phases. Caution is warranted if KDJ sustains above 80, which historically preceded minor pullbacks in July. No bearish divergence is observed.
Bollinger Bands
Bollinger Bands (20-day, 2σ) show a decisive breakout from contraction. The bands widened sharply during the September rally after a tight squeeze in late August, forecasting volatile expansion. Price currently touches the upper band ($321), confirming strength but increasing near-term reversion probability. Support converges with the 20-day SMA midline ($308), while a sustained upper-band ride would signal exceptional trend strength.
Volume-Price Relationship
Volume patterns validate bullish conviction. The 4% three-day advance coincided with rising volumes (+19% above 30-day average on September 8). Notable accumulation occurred during the August 29 breakout (+12% volume spike) and September 5 advance (+22% volume increase), confirming institutional participation. No volume divergences exist to challenge the rally’s legitimacy.
Relative Strength Index (RSI)
The 14-day RSI reading of 67 remains below overbought territory but shows an accelerating uptrend from mid-August’s 45 level. While above 70 would suggest overextension, current momentum allows room for further gains. Historically, RSI peaks above 75 (seen in early July) marked intermediate tops, implying watchfulness near 72–75. The absence of bearish divergence supports trend continuation.
Fibonacci Retracement
Applied to the dominant July 1 high ($326.55) to August 1 low ($234.60) swing, Fibonacci levels reveal strategic thresholds. The rally surpassed the 61.8% retracement ($295) and now challenges the 78.6% level ($320.50). Conclusive closes above $320.50 would target the 100% extension at $326.55. This level converges with recent resistance near $321.65, forming a high-probability breakout zone. Support aligns with the 50% retracement ($280.60) should profit-taking emerge.
Confluence & Caveats
Multi-indicator confluence occurs near $295–$300 (50-day MA, Fibonacci 61.8%, and volume-backed support) and at $320.50–$322 (Fibonacci 78.6%, recent highs, and Bollinger resistance). The sole caution stems from KDJ and RSI approaching overbought readings against Bollinger resistance, which may trigger short-term consolidation. Absent bearish divergences or volume deterioration, however, the primary uptrend appears intact. A decisive close above $322 would likely accelerate momentum toward the $326.55 Fibonacci target.