Hello I am the Cafe Trader.
Today we are going to be taking a look at UNH. No doubt this has to have come across your feed or in the news recently. Why is every so Bullish? People are so bullish, that it spooks me… Everyone is pumping this emphatically, I feel like they are getting paid to pump it. This is a bold statement, but It’s a gut feeling.
Tin Foil
If people get paid to pump, The huge seller isn’t done selling, and needs you to keep buying to sell into you. Yes this should make you hesitant and weary. Does this mean you shouldn’t buy? Not necessarily. Here are two scenarios to help you squeeze some juice out of this rock.
Bears are still in Control
A fresh new aggressive seller stepped in at $292.44. This is going to put some pressure on the high demand zone. May 25th, we sunk deep into the zone before recovering. This was an extremely hot reaction with passive buyers sitting at 271.30
11th of June aggressive buyers stepped in, but got crushed.
27th of June aggressive buyers stepped in, but as soon as they hit the real liquidity from the big seller (Tues jul 1st), you saw a huge follow through and more aggressive selling. This tells us that bears are still in control and I foresee two scenarios.
Green Scenario
Test off the liquidity at $271. Get a hot reaction from the buyers, putting tons of pressure on the new seller, ripping their faces and blasting off into never land.
Long
Entry 271
Stop 260
Partial TP 323
Final TP 425
Red Scenario
We test the New aggresor before the high demand Liquidity, get sold into heavily, and put so much pressure on buyers it blows pass the high demand and gets to the most probable bounce location at top of Extreme Demand $207.
Short
Entry 292
Stop 302.50
Partial TP 271
Final TP 207
Bonus Scenario
That 207 Area should attract massive buyers, even with the seller as heavy as he is. I think if there is going to be any big bounce strait off the cuff, this will be the spot.
Entry 207
Stop 185
TP 425 (play the long long game here)
Long Term
If you did your DD and you want a good price. The following will be measured by your personal sentiment.
Aggressive = 271
Fair price = 240
“Steal” = 191 – 207
That’s all for UNH, Remember to follow/Boost.
Stay tuned for more market analysis. Happy Trading!
thecafetrader
