To The Moon

$UnitedHealth(UNH)$ 

I am observing with concern the steep decline in UnitedHealth Group's stock, which has dropped from around $600 in April of this year to its current price near $240. The fact that it has lost 52% year-to-date is alarming, and the speculation that UNH may head to $160 adds to the uncertainty. This significant downturn has caught my attention, especially given the company's previous strength.

I have reviewed the chart I attached below, and the monthly candlestick pattern shows an extremely bearish trend. The stock remains well below the EMA200 (green coloured line), a key indicator for me, suggesting that the downward momentum is far from over. This technical analysis reinforces my cautious stance on the situation.

For me, this situation feels like a falling knife, and I believe we should avoid trying to catch it right now. The risk of further declines seems high, and I am hesitant to jump in without clearer signs of stabilization. The bearish trend on the chart is a strong signal that more downside could be ahead.

While the stock is at a low level, the question of when it will hit bottom remains unanswered. I am not convinced that the current price represents a safe entry point. The uncertainty around its future trajectory makes me wary of making a move at this stage.

I am considering whether to wait for lower prices before taking any action. Given the bearish trend and the potential for the stock to drop further, perhaps to $160 as some suggest, I think patience might be the wiser approach. Waiting could allow me to buy in at a more favorable level.

Alternatively, I could choose to buy now and forget about the price fluctuations, but that strategy does not align with my current assessment. The technical indicators and the steep decline make me prefer a more conservative approach. I want to ensure I am not locking in at a peak of a downtrend.

Looking ahead, I will continue to monitor the stock closely. If the chart shows signs of reversal or the EMA200 is approached with a potential bounce, I might reconsider my position. Until then, I am inclined to hold off and avoid the risk of further losses.

In summary, I believe the bearish trend and the falling knife scenario counsel against buying UNH at this moment. The chart's indication of more downside, combined with the lack of a clear bottom, leads me to wait for a better opportunity. I will keep watching and adjust my strategy as new data emerges.

As a retail investor, I focus mainly on the US and Singapore markets, combining a mix of technical trading and long-term investing strategies. I enjoy analyzing charts, spotting patterns, and making calculated moves based on both market sentiment and fundamentals. While I'm not a professional, I treat my portfolio seriously and continue to learn and grow with each trade. If you're also navigating the markets and enjoy discussing stocks, options, or market trends, feel free to follow me. Let's learn and grow together as a community.

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