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Technical analysis: HUMANA Inc. (#HUM)

Humana Inc. is America's third largest for-profit health insurance company headquartered in Louisville, Kentucky.

The stock, after a strong bearish period, managed to reverse its trend in mid-April 2021 and is now offering an excellent entry point for a short - medium term strategy.

Historically, the early summer months are favorable to the Healthcare sector and we believe that #HUM may be among those stocks that will perform well in the short to medium term.

The technical picture of Humana is interesting as in mid-April 2021 the stock managed to break a long bearish trend, which it is now testing again:

  • Strong reversal candle at $ 413: level that has been support and resistance since May 2020 and now coincides with the top of the recently broken bearish channel.

  • RSI has left the oversold zone

  • MACD, albeit below 0, is crossing to the upside

Should the stock go to stop loss, we will look at $ 371.00 - $ 372.00 as the new entry point as it represents the base of the parallel channel.

Entry range $ 420.00 - $ 422.00

Target 1 $ 436.00

Target 2 $ 450.00

Stop loss $ 400.00

OTB Global Investments

June 10, 2021

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