MINNETONKA, MN – UnitedHealth Group Inc. (NYSE: UNH) shares took a significant hit on Thursday, closing the trading session down 1.57%. The healthcare behemoth ended the day at
4.99, as persistent selling pressure dominated the afternoon.
The negative sentiment did not stop at the closing bell. In after-hours trading, the stock edged down another 0.17%, or
312.99**, suggesting that the bearish momentum may carry over into the new week.
Thursday’s session was a tale of a failed rally. After opening at
317.42** around midday. However, sellers took firm control in the second half of the day, driving the price down to a low of
318.52, establishing a new downward trend for the short term.
Outlook for Monday
With a combination of a steep intraday decline and a negative after-hours performance, the technical picture for UnitedHealth looks challenging heading into Monday.
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Bearish Outlook: The most probable scenario for Monday’s open is continued downward pressure. The stock closed near its daily low, and the after-hours selling, even if minor, confirms a lack of buying enthusiasm. Traders will be eyeing the daily low of $311.91 as a critical support level. A break below this price could open the door to further losses.
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Fundamental Factors: While the short-term trend is negative, some fundamentals may attract investors. With a P/E ratio of just 13.12 and a respectable dividend yield of 2.82%, value-oriented investors might see the current price as an attractive entry point. This could create buying support if the stock dips further.
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Given the decisive sell-off on Thursday and the weakness in post-market trading, investors should brace for a likely down or flat opening for UnitedHealth on Monday. The key battle will be fought around the
312 price zone. If buyers fail to defend this level, the stock could be headed for a retest of its 52-week lows in the coming weeks.
Disclaimer: This article is based on an analysis of past performance and technical indicators. It is not financial advice. Market conditions are subject to change, and investors should conduct their own research before making any trading decisions.
