United Health Broke Resistance

Published on Wednesday, 20 June 2012 07:40 Written by TradersHuddle Wire

New York, June 20th (TradersHuddle.com) - Shares of United Health Group Incorporated (NYSE:UNH) closed the session at $60.26 just above calculated resistance at $59.85. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.

United Health Group Incorporated (NYSE:UNH) owns and manages organized health systems in the United States and internationally. The Company provides employers products and resources to plan and administer employee benefit programs.

The stock was trading in a well defined range with support at $53.78 and resistance at $59.85. Given that this range was broken, traders will be closely monitoring United Health's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that United Health is still near the broken resistance level, traders will be focusing on the $59.85 level to see if the stock holds the breakout without rolling over.