UnitedHealth
Group Inc
(NYSE: UNH) has
really taken a beating since reversing direction late December. The stock has
done nothing but tank,
and has done so in an increasingly
aggressive manner. So why would I suggest it may be time to
start buying a little here and a little there?
It's not everyday that you see RSI at levels this low on a 3 year daily bars
chart. RSI is an indicator that suggests when a stock may be oversold or
overbought. UNH has just fallen below 30 and is headed for 20, suggesting that
the stock is indeed trading at bargain
prices. It would be a little different if we were talking about
a company with poor management, insignificant products, fraudulent accounting
rumors, etc..., but we're not.
Keep a close eye on UNH. There is
some support
at 45, so when the stock reaches these levels it will be easier to tell what
the future may hold. It's difficult to take a position in a stock that has such
drastic down side momentum, so careful
analysis will be required.
Happy Trading,
Andy Swan
co-founder, DaytradeTeam
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