UNH is positive on strong momentum after an oversold rebound from ~$255 and raised full-year forecasts; RSI higher lows and MACD above signal/zero help. It must clear $440 resistance and the 200-week average near $450, after which prices could return to ~$600; a weekly MACD crossover within two weeks would add support.

Let's take a look at the following name as well. We have United Health. It exceeded their expectations. They raised their forecasts for the entire year in their latest report. They have strong momentum at the moment. What are your thoughts on UnitedHealth, Mike?

Well, I was looking at the market in general. As you know, the healthcare sector is here to stay. So, I was looking for something that wasn't completely boring, but something robust that would hold up in the market even if the downward trend continued. It must at least hold up.

Well, Kevin, do you also see a possibility that it might at least hold out? Yes, I mean, actually, we are seeing very good price momentum for UnitedHealth, especially after we saw a sharp drop in the stock price at this time last year.

We continued to see lower peaks and troughs. A large part of that was due to changes in regulations. Fundamental factors also affected the stock. But we saw a significant drop, and perhaps an oversold level , when the stock started trading at around $255.

Then we saw a huge demand from buyers for this stock. It wasn't just financial institutions; large companies like Berkshire Hathaway invested huge sums in this stock, and it seems that this investment has paid off.

The stock managed to break above the 200-day, 50- day, and 20-day moving averages, then rebounded to around the $450 level . I don't consider this an explosive peak, but we saw significant trading volume at the $425 to around $450 level, and then we saw a pullback that resulted in lower lows and highs within the secondary trend.

The price approached the 200-day moving average relatively closely, then buyers came in, some good fundamental news emerged , and we started breaking through the 20-day and 50- day moving averages, and we were able to maintain the 200-day moving average level .

The 440 level is the next major resistance point before a higher breakout can be achieved.

Now, we can be more optimistic about this stock because the Relative Strength Index (RSI) is making higher lows, and we see the MACD indicator with its 12-day exponential moving average above the 26-day exponential moving average , and also above the zero line.

The trajectory and speed are very good when looking at these two moving averages.

However, if we look at the weekly average, we are not finished yet . The 200-week moving average is settling almost at the $450 level. You should get past that, but if you can, prices will return to around $600.

The weekly MACD indicator has not yet crossed the 12-period exponential moving average above the 26-period exponential moving average. So, we still have two more weeks ahead of us, but if this crossover happens, I think it will be positive for the stock.

Last but not least, Marley, healthcare stocks typically perform well during midterm elections, and I believe this is another reason for positive investment flows not only into UnitedHealth, but also into other health insurers like Humana.

Okay, Mike, you're absolutely right. Regarding the deal, KG pointed to a level of 450 on both charts. Does this level affect your deal?

Yes. I'm focusing on November 6th, so , you know, not for a long time, but the "Broken Wing Fly" buy option is at the 435, 445 and 450 levels. I'm specifically targeting the 445 level.

It's true that the price is a little higher, but I intended to buy at $1.35. This gives me a maximum return of $8.65. That means I get a profit of 6.4 to 1, and if we go past the 45 level, I will still have an additional profit at the end, meaning I will make a profitable trade if we go past the 450 level.

Okay. And now, we also have UnitedHealth Care, which is going against the grain. Its stock rose by more than 2% today to reach 42608.