UNH on watch for continuation after pullback LONG
UNH after earnings with a mild beat in mid July, price shot up for one week then went
sideways and then pulled back in the past week. Price is now at 497 and under
the dynamic resistance of the first deviation line above the mean VWAP. The dual
time frame shows a good pattern with the shorter TF of 3 minutes in green above the
longer TF of 45 minutes in black. The short TF is above the 50 level.
Overall, I think the pullback is about over. I will take a long trade with a buy stop of
500.25 setting the stop loss below what will become dynamic support of the blue
line at 499.5. This is a tight stop and low risk owing to the positioning of the trade
about a support level. I will target 515.00 for a risk to reward ratio of 0.75 to 15
or 1:20 which is outstanding. I may take a call option striking $510 out a couple of months
if it would not draw down by the cash portion of my overall portfolio more than 3%. This
option premium is about $9000 but I think the potential profit is about the same.
sideways and then pulled back in the past week. Price is now at 497 and under
the dynamic resistance of the first deviation line above the mean VWAP. The dual
time frame shows a good pattern with the shorter TF of 3 minutes in green above the
longer TF of 45 minutes in black. The short TF is above the 50 level.
Overall, I think the pullback is about over. I will take a long trade with a buy stop of
500.25 setting the stop loss below what will become dynamic support of the blue
line at 499.5. This is a tight stop and low risk owing to the positioning of the trade
about a support level. I will target 515.00 for a risk to reward ratio of 0.75 to 15
or 1:20 which is outstanding. I may take a call option striking $510 out a couple of months
if it would not draw down by the cash portion of my overall portfolio more than 3%. This
option premium is about $9000 but I think the potential profit is about the same.