UnitedHealth stock has turned technical analysis into a déjà vu moment for traders. RSI levels have sunk back to the high 20s on weekly charts, matching oversold territory last seen during the 2008 financial crisis. One analyst noted “UNH has plunged into deeply oversold territory only seen once before in 2008”
https://www.finbold.com/unitedhealth-stock-triggers-strongest-bullish-signal-in-over-15-years/
That drop is no accident. The stock is down nearly 45 % year to date. Costs per patient encounter are rising at a clip well beyond expectations. Revenue may still land above $111 billion but profit margins are under pressure. Justice Department billing scrutiny isn’t helping sentiment.
https://www.investors.com/news/unitedhealth-earnings-q2-unh-stock-dow-jones-medical-costs-premiums/
Citadel slashed its stake while Fisher increased his even as technicals flashed danger. Support levels at about $250 are now in play.
https://www.benzinga.com/general/health-care/25/05/45624067/unitedhealth-hits-2008-era-oversold-levels-as-citadel-advisors-sells-fisher-buys
UnitedHealth is now at a technical inflection. Conditions show traders pulling risk while long-term caseers see a bottoming environment. The contrast between trading indicators and headline revenue beats suggests fragile confidence. A bounce may arrive, but only if legal clouds clear and costs moderate.
Behind the oversold signals lies the real pressure point. Rising medical costs, regulatory risks and profit erosion are not reflected in the RSI. Until those are addressed, technical relief rallies may quickly fade.
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