The leading health care stocks have been coming under pressure recently. Health care stocks such as UnitedHealth Group Inc (UNH), Cigna Corp (CI), Humana Inc (HUM), Molina Healthcare (MOH) and others are all trading lower again today. The near term trends in the health care stocks have now turned down on the daily chart.
Molina Healthcare (MOH) is one health care stock that has caught my eye. This stock peaked on August 18th, 2020 at $198.38 a share. Since that pivot high, the stock has been declining lower and is now trading around the $162.70 area. While there are some near term support levels in play for MOH stock the trend is now down, so it can trade lower. Often, when the trend shifts I will usually look to the larger time frames for support levels. Traders can now watch the $145.00 area for key support when tested. This is where the stock broke out in April 2020. It is also a level where the 100-week moving average is sitting. These key levels when combined should serve as excellent support when tested. I would loong to trade MOH stock on the long side around the $145.00 level.
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