UnitedHealth Group (NYSE: UNH) Supported Pullback in Progress

UnitedHealth Group Incorporated (NYSE: UNH) is the largest healthcare company in the world by revenue providing health care products and insurance services.

UNH established an impulsive 5 waves advance from 3/25 low allowing the stock to rally to new all time highs last April followed by another move higher early this month. Based on the Elliott Wave Theory, the 5 waves advance is followed by a corrective 3 waves pullback before the trend can resume.

The stock ended the impulsive rally at $315.8 peak and started the correction lower showing the initial first leg of a potential 3 waves Zigzag structure which can take it lower toward $267 – $251 area where buyers are expected to show up to resume the rally within the main trend or looking for a  3 waves bounce at least.

UNH 4 Hour Chart

UNH 4 Hour

The health insurance giant has an impulsive bullish structure supporting the stock above $187 low and therefore the current pullback is expected to provide a buying opportunity in 3, 7 or 11 swings as long as March 20520 low is holding.