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