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Since their decline in early December, we have seen the shares of UnitedHealth Group (UNH) make the lowest highs and lows. This is probably the worst-performing name in the Dow Industrials Index in 2019 (or so).
With lower lows, this creates a pattern – and it's a downtrend, the channel is well-defined.
Note that the cloud is still bearish and expanding, while the moving average convergence divergence (MACD) is on a sell signal.
Cash flows began to weaken and continue the trend of cash outflows starting in March. We could see UNH continue to descend down the canal, placing it near the $ 200 level.
This is not a title with which you want to play, as evidenced by Tuesday's earnings.
(UnitedHealth is a participation in Jim Cramer's Action Alerts PLUS member club.) Do you want to be alerted before Jim Cramer buys or sells UNH? Learn more now.)
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