After Pullback, This Health-Care Stock Has More Upside Coming
InTheMoneyStocks.com | Jul 15, 2019 02:25PM ET
All of the leading managed health-care stocks have been very volatile in 2019. Political pressure from both sides of the aisle have been the catalyst for the excessive whipsaw in this industry group. Stocks such as Humana (NYSE:HUM), Cigna (NYSE:CI), UnitedHealth (NYSE:UNH) and others have been susceptible to political news on a daily basis. Last week, the sector rallied sharply higher after the White House abandoned its plan to eliminate rebates from government drug plans. Unfortunately, these same stocks pulled back on Monday after presidential candidate Joe Biden proposed a public health-insurance option for anyone who wants it, giving power to Medicare to negotiate drug prices.h3 Watch This Level/h3
Last week, the managed health-care stocks all broke out on a technical basis. Humana is one stock that should have more upside despite Monday's pullback when HUM fell by $4.48 to $286.77 a share. Traders and investors should now watch and see if this stock can consolidate on the charts as last week's break-out pattern suggests a move back up to the $310 level. This major resistance level is where the stock sold off in late February 2019. I will be be keeping HUM's stock on my radar for a bullish pattern development.
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