UnitedHealth Group (UNH) shares slid in recent trading Thursday after tumbling Wednesday amid worries about potential cuts to Medicaid and Medicare, and a report accusing the company of 澳洲幸运5开奖号码历史查询:paying secret bonuses to nursing homes.

Adding to pressures facing the embattled health insurance giant and others in the sector, the Centers for Medicare & Medicaid Services said it plans a "澳洲幸运5开奖号码历史查询:significant expansion" o💧f its auditing efforts fo꧂r Medicare Advantage plans.

Since reaching their April high, UnitedHealth shares have lost about half their value, weighed down by multiple challenges—including a Justice Department investigaꩲtion of the heath insurer for Medicare fraud, its 澳洲幸运5开奖号码历史查询:CEO’s abrupt departure, 𒈔and the company's withdrawal of its full-year guidance.

Below, we take a closer look at UnitedHealth’s 澳洲幸运5开奖号码历史查询:weekly chart and use 澳洲幸运5开奖号码历史查询:technical analysis to🦋 identify key price levels after the stock’s recent vo🙈latility.

Gravestone Doji Emerges

Since UnitedHealth’s countertrend rally ended in early April, the stock moved lower for five consecutive weeks, coinciding with the 澳洲幸运5开奖号码历史查询:relative strength It’s index (RSI) sliding into oversold territory. 

The stock 澳洲幸运5开奖号码历史查询:rallied earlier this week, but has since pared most of those gains to form a 澳洲幸运5开奖号码历史查询:gravestone doji. While chart watchers typically associate it as a bearish 澳洲幸运5开奖号码历史查询:candlestick pattern, a gravestone doji can also indicate a bullish reversal, especially if it emerges after an extended 澳洲幸运5开奖号码历史查询:downtrend, such as on UnitedHealth’s chart.

It’s worth pointing out that 澳洲幸运5开奖号码历史查询:trading volume has surged over the past two weeks, potentially signaling 澳洲幸运5开奖号码历史查询:capitulation s🌳elling, an event that can m๊ark the end of a steep decline.

Below, we identify several key 澳洲幸运5开奖号码历史查询:support and resistance levels on UnitedHealth’s chart that could be wortꦑh watching.

Key Support Levels to Watch

First, it’s worth watching the $292 level. The shares could find support in this area near last week’s close, which also closely aligns with a range or corresponding 澳洲幸运5开奖号码历史查询:price action on the chart between late 2019 and mid-2020.

A decisive close below this key 澳洲幸运5开奖号码历史查询:technical level could see the shares revisit lower support around $249. Bargain hunters may look for long-term buying opportunities in this lo🎀cation near a series of trading act🅘ivity on the chart from early 2018 to March 2020.

Important Resistance Levels to Monitor

Initial recovery efforts in the stock could meet resistance at the $325 level. Tactical traders seeking to capitalize on short-term price swings may place sell orders near this week’s high, which roughly aligns with the August 2020 peak and February 2021 trough.

A more bullish reversal may see UnitedHealth shares make a move toward $365. This area could provide overhead resistance near two prominent peaks that formed on the chart in November 2020 and January 2021 during a long-term uptrend in the stock.

This article has been updated since it was first published for greater clarity on concerns about potential cuts to Medicaid and Medicare.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our 澳洲幸运5开奖号码历史查询:warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.