UNH Has Healthy Buy Signal

04/22/2019 1:15 pm EST

Focus: STOCKS

John Rawlins

President and CEO, QuantLogik LLC

The QuantCycles Oscillator is flashing a big green buy signal in UNH, says John Rawlins.

The recent weakness in the Health Care Sector has created an opportunity in one of its major components. The Health Care SPDR (XLV) has been in a slump in April driven by a 15% drop by UnitedHealth Group (UNH).

The long-term QuantCycles Oscillator for UNH had bottomed at the end of March, but UNH has continued to drop. This had put UNH in extreme oversold territory right when the long-term oscillator signaled a sharp upturn (see chart).

unh w

With this strong bullish long-term signal, we decided to drill down a little further to see if the timing was right for to go long UNH.

AS you can see from the daily signal below, UNH is also close to an extreme oversold position with the oscillator trending higher on the daily chart.

unh d

An examination of the four-hour chart shows that UNH had already began to turn up at the end of Thursday’s session and is poised to continue higher over the next several days.

unh

John Rawlins described the value of the QuantCycles Oscillator recently at The Orlando MoneyShow.

The QuantCycles indicator is a technical tool that employs proprietary statistical techniques and complex algorithms to filter multiple cycles from historical data, combines them to obtain cyclical information from price data and then gives a graphical representation of their predictive behavior (center line forecast). Other proprietary frequency techniques are then employed to obtain the cycles embedded in the prices. The upper and lower bands of the oscillator represent a two-standard deviation move from the predictive price band and are indicative of extreme overbought/oversold conditions.

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