Happy Monday folks. Tonight we have a new trending signal on UNH brought to us by the T3 Version 2 Strategy Suite. Let’s go have a look.
UNH has been trending higher for months and in the process, it has provided us with many higher low entry opportunities. This is important for multiple reasons. One, traders need higher lows to enter trending moves at price improved levels. Second, the longer the trend, the more reliable the higher lows are.
This particular higher low has bounced off of support close to $190 which was also its trend line. It is also oversold on the RSI indicator which puts it in solid buying territory. If this movement continues, we could be looking at UNH reaching the $200 level sooner rather than later.
The T3 Strategy suite generates signals that lead to consistent gains with low drawdowns. We designed T3 to stay invested as much as possible while avoiding the meltdowns that can occur in the market at any time.
The T3 Strategies look for quick pullbacks in the market, placing Long Trades on the likelihood of a reaction rally. This concept is of course known as the Reversion to Mean or R2M method. The R2M principle states that markets trend about 80% of the time. Within these trends, there are pullbacks that create temporary oversold conditions. The goal is to identify these pullbacks at the precise moment they appear oversold to the market and then buy them just ahead of the bounce. Then, one holds the position just long enough to capture the reaction move and take a profit.
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