Close to Key Levels: United Health

Published on Wednesday, 25 July 2012 07:40 Written by TradersHuddle Wire

New York, July 25th (TradersHuddle.com) - United Health Group Incorporated (NYSE:UNH) closed the trading day at $54.90, near its 50 day and 200 day moving averages set at $56.59 and $53.20 respectively. United Health's price action placed the stock above the 200 day moving average but below its 50 day moving average, a setup that signals a possible break out.

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.

United Health seems to be setting up for a tight range between the 200 day moving average as support and the 50 day moving average serving as resistance.

A tiered approach, appears to be the best strategy to maximize possible movements in the stock, as traders could establish a small position in United Health and wait for the stock to break out above its 50 day moving average at $56.59. Then they could add to the position as momentum builds with the breakout. On the flip side, if support being referenced at the 200 day moving average set at $53.20 breaks, it could signal further downside pressure for United Health.