Chart of the Day: Elevance Needs More Elevation
Expectations are high as the company reports earnings July 17, but price action has been strong.
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It's been a rollercoaster ride for Elevance Health ELV as news from the government about reimbursement and high expenses are hitting the bottom line. Similar names United Healthcare UNH and Cigna CI have seen plenty of volatility in their stock prices as well, so Elevance is not alone with regards to wide price movement.
However, ELV stock seems to have stabilized and shows some bullish qualities here. If earnings are strong on July 17 there is room to rise, approaching our target of $560 per share.
Looking at the current indicators, Moving Average Conergence Divergence (MACD) is struggling, but we can see why in the top pane with the box isolating the last month worth of action.
Pretty much sideways action is the call here, but basing at a higher level sets up a potential rally up to new highs. Money flow is robust (bottom pane), and stochastics (momentum) in pane 4 is starting to make a run. We see good opportunity in this stock.
We rate Elevance a Two in TheStreet Pro portfolio.
More Pro Portfolio:
- Locking in Big Gains on This High-Flying Stock
- Weekly Roundup: Rotating Back to the Start
- Reading the 'News Signals' From Our Investing Notebook
At the time of publication, TheStreet Pro Portfolio was long ELV.
