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UnitedHealth Group Is Poised for an Upside Breakout

Prices have rocketed higher since early October.
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During Tuesday night's Mad Money program Jim Cramer mentioned that he still liked UnitedHealth Group Inc. (UNH) . With prices close to their 2018 highs let's check out the charts for this Action Alerts PLUS holding. 

In the daily bar chart of UNH, below, we can see that prices have rocketed higher since early October. UNH is now above the rising 50-day moving average line and the rising 200-day moving average line. The quicker-to-react 50-day line is about to cross above the 200-day line for a bullish golden cross. This math-driven indicator is typically late in giving signals but can be useful in long-trending moves.

The daily On-Balance-Volume (OBV) line has moved higher the past two months and is not far from making a new high for the year.

The Moving Average Convergence Divergence (MACD) oscillator gave a buy signal in the middle of October and it is still bullish. 

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In the weekly bar chart of UNH, below, we can see the past three years of price movement. The past year or so looks like a large continuation pattern. Prices are above the rising 40-week moving average line and UNH is very close to a test and probable breakout over $290.

The weekly OBV line has been moving up since the middle of September and suggests that buyers of UNH have been more aggressive. The OBV line is close to making its own new high.

The weekly MACD oscillator is in a bullish configuration above the zero line.  

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In this first Point and Figure chart of UNH, below, we can see the uptrend and a potential price target of $312. A trade at $285.32 will be a new high for the move up and will refresh the uptrend.  

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In this second Point and Figure chart of UNH, below, we used weekly close-only data. Here a longer-term price target of $408 is indicated. 

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Bottom-line strategy: I have no idea if any campaign rhetoric will influence the direction of prices but right now it looks like UNH can trade higher with a breakout over its 2018 zenith. Trade UNH from the long side risking a close below $265 for now.

Employees of TheStreet are prohibited from trading individual securities.

Action Alerts PLUS, which Cramer manages as a charitable trust, is long UNH.