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Is Humana a Deep Value Stock to Buy?

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Among the most spectacular falls from grace recently has to be Humana (HUM - Free Report) ). This health insurance company was plodding along at $560 into the winter of 2022. Since then, it’s been nothing but negativity, with the last leg evaporating from $400 to under $240 in less than three months. The latest splash was due to the company disclosing more risk in its ability to fully achieve its individual Medicare Advantage margin target of at least 3% by 2027.

Back-to-back 11% down days for the stock has long-term investors reeling. The stock is now down here testing multi-year support. We are talking about levels unseen since the COVID pandemic lows. There aren’t too many stocks out there than can echo that notorious talking point.

last 4 trading days.

Moving Averages: Bartosiak starts by examining the stock's moving averages, such as the 50-day and 200-day moving averages. He points out the significance of crossovers and divergences between these averages, which can indicate potential trend changes.

Support and Resistance Levels: Bartosiak identifies key support and resistance levels on the chart. These levels act as barriers that the stock price must breach or hold above, providing traders with critical decision points.

Chart Patterns: He discusses chart patterns like head and shoulders, cup and handle, or flags, and their relevance in predicting future price movements. These patterns can offer valuable insights into potential bullish or bearish trends.

Volume Analysis: He emphasizes the importance of volume analysis in confirming price trends. An increase in trading volume during a breakout or breakdown can validate the significance of a price move.

Dave Bartosiak's technical analysis approach adds depth to our understanding Humana’s stock chart. By paying attention to moving averages, support and resistance levels, chart patterns, technical indicators, and volume, he equips investors with a comprehensive toolkit for making well-informed decisions in the stock market. Remember, while technical analysis is a valuable tool, it's important to consider other factors like fundamental analysis and market sentiment before making investment choices.


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