UnitedHealth Group (UNH) shares fell sharply Thursday after the well being insurer reported fourth-quarter results below Wall Street’s expectations and issued a lackluster outlook amid greater medical prices.

The company, which stored its 2025 outlook unchanged, mentioned it expects a medical cost ratio (MCR)—the proportion of premiums spent on medical care—of 86% to 87% this 12 months. By comparability, the insurer’s MCR sat just a bit over 82% within the first quarter of 2023.

UnitedHealth shares have been the largest decliners on the S&P 500 on Thursday, falling 6% to $510.59. The inventory, which is down almost 20% from its report excessive set in November, is just about unchanged from a 12 months in the past, whereas the S&P 500 has gained 25% within the final 12 months.

Under, we break down the technicals on UnitedHealth’s chart and determine key value ranges that buyers could also be watching after the inventory’s earnings-driven decline.

Sellers Reemerge at 200-Day Transferring Common 

After rallying from their mid-December low, UnitedHealth shares bumped into promoting strain close to the 200-day moving average, with in the present day’s drop following a number of failed makes an attempt by the bulls to shut above the carefully watched indicator.

Furthermore, Thursday’s promoting occurred on the best trading volume because the inventory’s sharp transfer decrease final month, opening the door for additional draw back.

Amid weakening value momentum, let’s level out two key support levels to observe, but in addition determine vital overhead areas price watching if the inventory breaks its present downtrend.

Key Help Ranges to Monitor

The primary decrease degree to look at sits round $475. This location might present important assist close to a multi-month trendline that connects a number of troughs on the chart between September 2023 and December final 12 months.

A breakdown under this vital technical degree might see the shares fall to the $436 space, a area the place buyers might search for shopping for alternatives to accumulate shares close to the distinguished April 2024 low.

Overhead Areas to Watch

Upon a countertrend rally within the inventory, buyers ought to firstly watch the $550 degree. Traders might think about locking in profits on a retest of this month’s excessive, which carefully corresponds with a spread of comparable value factors on the chart stretching again to November 2023.

A breakout above this key resistance degree might see the shares climb to round $605, an space the place they might encounter promoting strain close to a number of peaks positioned just under the inventory’s all-time high (ATH) in November final 12 months.

The feedback, opinions, and analyses expressed on Investopedia are for informational functions solely. Learn our warranty and liability disclaimer for more information.

As of the date this text was written, the writer doesn’t personal any of the above securities.