Health Care Stocks Tumble On Amazon, Berkshire, JPMorgan Announcement
Nicholas Santiago | Jan 30, 2018 11:51PM ET
This morning, almost every leading health care stock is coming under major selling pressure. The weakness in the health care stocks comes after an announcement was made by Amazon.com (NASDAQ:AMZN) boss Jeff Bezos, Berkshire Hathaway (NYSE:BRKa) boss Warren Buffett and JPMorgan Chase (NYSE:JPM) Chairman Jamie Dimon announced Tuesday morning that they are "partnering on ways to address healthcare for their U.S. employees, with the aim of improving employee satisfaction and reducing costs." Leading health care stocks such as UnitedHealth Group Incorporated (NYSE:UNH), Aetna (NYSE:AET), Cigna Corp (NYSE:CI), Humana Inc (NYSE:HUM), Express Scripts Holding Co (NASDAQ:ESRX), CVS Health (NYSE:CVS), and others are tumbling on the announcement.
As traders we must look at this decline in the health care stocks as a trading opportunity. Cigna Corporation (NYSE:CI) is an equity that is now on my radar. The daily chart is showing very good support around the $205.00 level. This is where the stock formed a solid chart base in late December before breaking out to new highs. Often, a retest of this area will lead to a solid bounce for the stock. I will be finding more levels for other health care stocks in the coming days, but Cigna Corp (CI) is one stock that has caught my eye right now.
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