Humana Inc. : Double-bottom on the USD 164.2
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
US$167.61 | US$0 | US$162.5 | -100% |
Main fundamental arguments are the low valuation of the company (EV/Sales of 0.46x for the current year) and the growth expected for the next years.
Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average, currently at USD 173.9, shows. Nevertheless, the stock seems in an oversold situation and near to its USD 164.2 support in daily data. A "double-bottom" pattern appears on the stock, opening an upward potential.
Thanks to the technical pattern and Humana strong fundamentals, active investors can open a long trade above USD 164.2. The downside potential is limited and the timing seems perfect to benefit from a technical rebound.
The main goal will be fixed at USD 186.7.
However, a bearish trend would regain the upper hand if the security crosses USD 164.3.