UnitedHealth (UNH) Shares Plunge Following Earnings Report

Yesterday, prior to the opening of the main trading session, UnitedHealth released its quarterly results along with forward guidance. As a result, UNH shares dropped by over 7%, signalling deep disappointment among market participants. According to media reports:

→ Earnings per share came in at $4.08, missing analysts’ expectations of $4.48.
→ Revenue guidance was set at $445.5–448 billion, falling short of the anticipated $449.07 billion.
→ Concerns were further fuelled by rising costs and declining profitability, which the company attributed to the continued impact of Medicare funding cuts.

Consequently, the UNH share price dropped to its lowest level of 2025, last seen on 15 May.

Technical Analysis of UNH Stock Chart

In our end-of-May analysis, we updated the descending channel on the UNH stock chart and highlighted that following the recovery from the May low (marked by arrow 1), sellers could regain control. Since then:

→ Throughout June, the share price exhibited signs of supply-demand equilibrium around the psychological $300 level.
→ However, after an unsuccessful rally that formed peak A (which now resembles a bull trap), the balance shifted in favour of the bears. The price began to slide lower along the median line of the descending channel (illustrated by arrow 2).

This pattern was a red flag, particularly against the backdrop of a broadly rising equity market since the beginning of summer. Even if the bulls had hope, yesterday's candle could have completely extinguished it:

→ The session opened with a wide bearish gap.
→ During the day, bulls attempted a recovery, but failed — the candlestick closed at the daily low, leaving a long upper wick, a classic sign of selling pressure.

In this context, we could assume that:

→ Bears may seek to extend their advantage and test the year’s low;
→ The bearish gap area (highlighted in purple), reinforced by the descending channel’s median line, could act as resistance during any potential recovery.

At the same time, the $250 psychological level appears to be a strong support zone. This is backed by the 15 May bullish pin bar formed on record trading volumes — a potential sign of institutional interest in accumulating shares of this healthcare giant in anticipation of a long-term recovery.

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