Two stocks worth watching this week
By Antreas Themistokleous
11 April 2023
Let’s see what the charts revealed this week and what you might want to consider trading in the coming days.
UnitedHealth Group shares outlook before the earnings
Shares in UnitedHealth Group Incorporated (UNH) have been trading in a bearish movement throughout the first quarter of 2023. The company is expected to report its earnings for the fiscal quarter ending March 2023 on Friday, 14 April. The consensus EPS is $6.25 (USD) compared to the result for the same quarter last year of $5.49.
The last recording in regard to the company’s current ratio for the last quarter in 2022 was 77%. This indicates that the company does not have the ability or assets to adequately cover its current liabilities.
With a low dividend yield of less than 1.5% and a payout ratio of around 30%, the company does not qualify as an exciting or attractive option in terms of returns.
Although the company’s technical details might not be that appealing, it is still one of the biggest players in the health insurance industry and therefore still attracting investors’ attention.
On the technical side, the price has been trading in a declining channel for the first quarter of the year with a valid break in the last session. The Bollinger bands are expanding and indicating volume building. The coming sessions are important to see if the price will move back into the channel or if the bullish correction will hold strong.
The 50-day moving average is still trading well below the 100-day moving average showing that the overall bearish movement is still valid for the time being. The Stochastic oscillator is moving towards the extreme overbought levels.
Consider installing the Exness Terminal to monitor UNH on the charts and even get breaking news and breakout notifications.
JP Morgan mostly unaffected by the banking turmoil
J P Morgan Chase & Co (JPM) share price has been making consecutive gains since the beginning of the year with a correction taking place in early March when the failure of banks in the US shocked the markets.
The company is expected to report its earnings for the fiscal quarter ending March 2023 on Friday 14th of April. The consensus EPS for the quarter is $3.43 compared to the result for the same quarter last year of $2.63.
JP Morgan took a light hit through the turmoil in the banking industry, mainly because of its huge size. With a dividend yield of over 3% and a very strong balance sheet, the company is an attractive addition to investors' portfolios.
From the technical analysis perspective, the price found support on the 38.2% of the daily Fibonacci retracement level after incurring losses in early March when news about bank failures hit mainstream media.
The Bollinger bands are shrinking indicating the volatility is slowing down, while the 50-day moving average is still trading above the 100-day moving average indicating the bullish momentum might still be valid.
In any case, the levels of $134 and $123 consist of technical support and resistance areas, since they are at 23.6% and 50% of the daily Fibonacci retracement levels respectively.
As always, it is recommended that you check the charts after reading this to see real-time prices. Click the button below to register for free access to Exness charts on your browser. No download or installation is needed.
This is not investment advice. Past performance is not an indication of future results. Your capital is at risk, please trade responsibly.
Antreas Themistokleous is a trading specialist in Exness. He is a Certified Financial Technician since 2018. As a member of the Society of Technical Analysts, Antreas is implementing advanced use of indicators and patterns to conclude in an action plan for different trading strategies.
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