Insurance Surveillance

Chances are this week aren't going to see much action in the markets as far as buying and selling. We Ferengi always keep an eye on the lunar cycle and the lunar cycle is moving into its consolidation phase, but that is a topic for a different time. I my post Finding Stocks the Ferengi Way I highlighted Insurance (Accident & Health) so I will highlight a few stocks in which I the Bajoran Profit am keeping my lobes alert for.

Long term chart of UNH

In the 2 year weekly chart of UNH we see the downward trend has been broken although we are definitely cautious since see another resistance level at 56. Our oscillators at the bottom both gave us bullish divergences as a an alert to the recent movement and the trend reversal. With the new found uptrend in the industry group we are bullish on this stock's ability to break resistance. This is probably not the entry for a swing trader but the trend trader should consider a small position here.

Short term chart of UNH

The next stock in this group is WLP or Wellpoint Inc. The long-term chart of WLP shows a downward consolidation that was recently broken. The trend trade could entry here with a stop around $82 and then scale into a larger position if and when the stock breaks the $86 resistance level.

Long term chart of WLP

The shorter term play would be the channel itself. No doubt the break a few weeks ago would've been the best entry but we are half way through the $10 move now. Entering now with a stop at the quarter mark ($82.50) can still allow us to make a little off them move here and keep at least a 2 to 1 reward to risk ratio.

Short term chart of WLP