Watch These UnitedHealth Worth Ranges as Inventory Slumps on DOJ Probe Affirmation

UnitedHealth Group (UNH) shares tumbled Thursday after the medical health insurance large confirmed that it’s the topic of a Division of Justice investigation.

The corporate mentioned it’s complying with formal legal and civil requests from the DOJ, a improvement that follows months of stories that the company is investigating UnitedHealth’s billing practices in its Medicare Benefit program.

Since setting their April excessive, UnitedHealth shares have misplaced greater than half their worth, with stories of federal scrutiny compounded by a downgraded revenue forecast earlier this yr and the departure of the corporate’s CEO. Wanting forward, traders shall be looking forward to updates on the DOJ probe and the corporate’s monetary efficiency when UnitedHealth stories earnings earlier than the market opens subsequent Tuesday.

UnitedHealth shares fell almost 5% on Thursday to $278.58, their lowest closing stage since mid-Might. The inventory is the weakest performer within the Dow Jones Industrial Common in 2025.

Under, we take a more in-depth take a look at UnitedHealth’s weekly chart and level out value ranges that traders will probably be watching.

Downtrend Resumes After Transient Consolidation

After briefly consolidating in June, UnitedHealth shares have resumed their robust downtrend on growing quantity this month, a transfer that has coincided with the 50-week transferring common (MA) crossing under the 200-day MA to kind an ominous “dying cross.”

Whereas the relative energy index confirms bearish value momentum, it additionally flashes oversold circumstances, probably attracting discount looking within the inventory.

Let’s find two key assist ranges to look at on UnitedHealth’s chart if the shares hold trending decrease and in addition establish overhead areas price monitoring throughout future restoration efforts within the inventory.

Key Help Ranges to Watch

The primary decrease stage to look at sits round $250. This space could present assist close to the Might sell-off low, which carefully aligns with a spread of corresponding value motion on the chart stretching again to early 2018.

Promoting under this key stage opens the door for a retest of decrease assist close to $215. Traders may search for long-term shopping for alternatives on this location near a horizontal line that hyperlinks a collection of troughs on the chart from November 2017 to September 2019.

Overhead Areas Value Monitoring

Throughout restoration efforts within the inventory, traders ought to initially monitor the $325 space. The worth could encounter promoting stress on this area close to final month’s excessive, which traces up with a pullback to the 50-week MA in February 2021.

Lastly, a profitable breakout above this space may gasoline a transfer towards $368. Those that have accrued UnitedHealth shares at decrease ranges might even see this as an appropriate location to lock in income close to the November 2020 and January 2021 peaks throughout an prolonged uptrend within the inventory.

The feedback, opinions, and analyses expressed on Investopedia are for informational functions solely. Learn our guarantee and legal responsibility disclaimer for more information.

As of the date this text was written, the creator doesn’t personal any of the above securities.