Key Takeaways

• UnitedHealth shares tumbled Thursday after the health insurer reported fourth-quarter results below Wall Street’s expectations and issued a lackluster outlook amid higher medical costs.

• The stock ran into selling pressure near the 200-day moving average, with today’s earnings-driven drop following several failed attempts by the bulls to close above the closely watched indicator.

• Investors should watch key support levels on UnitedHealth's chart around $475 and $436, while also monitoring important overhead areas near $550 and $605.

UnitedHealth Group (UNH) (UNH) shares fell sharply Thursday after the health insurer reported fourth-quarter results below Wall Street’s expectations and issued a lackluster outlook amid higher medical costs.

The company, which kept its 2025 outlook unchanged, said it expects a medical cost ratio (MCR)—the percentage of premiums spent on medical care—of 86% to 87% this year. By comparison, the insurer’s MCR sat just a little over 82% in the first quarter of 2023.

UnitedHealth shares were the biggest decliners on the S&P 500 on Thursday, falling 6% to $510.59. The stock, which is down nearly 20% from its record high set in November, is virtually unchanged from a year ago, while the S&P 500 has gained 25% in the last 12 months.

Below, we break down the technicals on UnitedHealth’s chart and identify key price levels that investors may be watching after the stock’s earnings-driven decline.

Sellers Reemerge at 200-Day Moving Average

After rallying from their mid-December low, UnitedHealth shares ran into selling pressure near the 200-day moving average, with today’s drop following several failed attempts by the bulls to close above the closely watched indicator.

Moreover, Thursday’s selling occurred on the highest trading volume since the stock’s sharp move lower last month, opening the door for further downside.

Amid weakening price momentum, let’s point out two key support levels to monitor, but also identify important overhead areas worth watching if the stock breaks its current downtrend.

Key Support Levels to Monitor

The first lower level to watch sits around $475. This location could provide significant support near a multi-month trendline that connects multiple troughs on the chart between September 2023 and December last year.

A breakdown below this important technical level could see the shares fall to the $436 area, a region where investors may look for buying opportunities to accumulate shares near the prominent April 2024 low.

Overhead Areas to Watch

Upon a countertrend rally in the stock, investors should firstly watch the $550 level. Investors may consider locking in profits on a retest of this month’s high, which closely corresponds with a range of similar price points on the chart stretching back to November 2023.