
5 Health Insurance Stocks Struggling to Hold Gains
How healthy are the major U.S. health insurance companies?
Aetna (AET) , Anthem (ANTM) - Get Report , Cigna (CI) - Get Report , Centene (CNC) - Get Report and UnitedHealth (UNH) - Get Report have benefited from the Affordable Care Act, aka Obamacare. Open enrollment for 2016 coverage began on Nov. 1.
However, the number of uninsured people enrolling in Obamacare plans has been far less than what was projected, in large part because of the cost. At the same time, the health insurance industry has been consolidating, spurred by the ACA. In July, Anthem agreed to buy Cigna for $48 billion. In late October, Aetna shareholders approved the acquisition of Humana (HUM) - Get Report .
All five big insurers set all-time highs between June 22 and Aug. 18 except for Cigna, which reports early Friday. Analysts expect Cigna to earn $2.17 a share.
Here's the daily chart for Aetna.
Courtesy of MetaStock Xenith
Aetna closed Tuesday at $111.81, up 2.2% so far in the fourth quarter and up 25.9% year to date. Despite this performance, the stock is in correction territory 16.8% below its all-time high of $134.40 set on June 26. The 52-week low of $93.51 on Aug. 24, during the flash crash known as "Black Monday."
The key trading levels are the Fibonacci retracements of the decline from the all-time high to the flash crash low. Since the low the stock has not been able to trend above the 61.8% of $118.76 and the 23.6% retracement of $103.17 has held at trading range lows.
Investors looking to buy Aetna should place a good till canceled limit order to purchase the stock if it drops to $98.83, which is a key level on technical charts until the end of 2015.
Investors looking to reduce holdings should place a good till canceled limit order to sell the stock if it rises to $116.16, which is a key level on technical charts until the end of 2015.
Here's the daily chart for Anthem.
Courtesy of MetaStock Xenith
Anthem closed at $137.05 Tuesday, down 2.1% so far in the fourth quarter and up 9.1% year to date. The stock is in bear market territory 21% below the all-time high of $173.05 set on June 22.
The stock has been under a "death cross" since Sept. 25 when the 50-day simple moving average, now at $143.11 first declined below the 200-day simple moving average, now at $151.11. The low set since this negative signal has been $134.62 set on Sept. 28.
Investors looking to buy Anthem should place a good till canceled limit order to purchase the stock if it drops to $121.43, which is a key level on technical charts until the end of 2015.
Investors looking to reduce holdings should place a good till canceled limit order to sell the stock if it rises to $142.55, which is a key level on technical charts until the end of 2015.
Here's the daily chart for Cigna.
Courtesy of MetaStock Xenith
Cigna had a close of $131.95 on Tuesday, down 2.3% so far in the fourth quarter and up 28.2% year to date. The stock is in bear market territory 22.7% below the all-time high of $170.68 set on June 26. The low since this high is $124.17 set on Aug. 24.
Note that the 50-day simple moving average at $137.85 is poised to trend below its 200-day simple moving average of $135.43 into a "death cross" pattern. What could prevent this is a positive reaction to earnings on Friday.
Investors looking to buy Cigna should place a good till canceled limit order to purchase the stock if it drops to $114.94, which is a key level on technical charts until the end of 2015.
Investors looking to reduce holdings should place a good till canceled limit order to sell the stock if it rises to $137.96, which is a key level on technical charts until the end of 2015.
Here's the daily chart for Centene.
Courtesy of MetaStock Xenith
Centene closed at $61.36 on Tuesday, up 13.1% so far in the fourth quarter and up 18.2% year to date. However, the stock is in bear market territory 26.1% below the all-time high of $83 set on July 2. The low since this high is $50.93 set on Sept. 29.
The stock has been under a "death cross" since Sept. 29 when the 50-day simple moving average, now at $59.36 first declined below the 200-day simple moving average, now at $66.13.
Investors looking to buy Centene should place a good till canceled limit order to purchase the stock if it drops to $52.16, which is a key level on technical charts until the end of 2015.
Investors looking to reduce holdings should place a good till canceled limit order to sell the stock if it rises to $63.18, which is a key level on technical charts until the end of 2015.
Here's the daily chart for UnitedHealth.
Courtesy of MetaStock Xenith
UnitedHealth had a close of $117.66 on Tuesday, up 1.4% so far in the fourth quarter and up 16.4% year to date. The stock set its all-time high of $126.21 on Aug. 18. The low has been $95, set on Aug. 24, and the stock is in bear market territory, down 24.7%.
Note that the 50-day simple moving average at $117.99 is poised to trend below its 200-day simple moving average of $117.52 into a "death cross" pattern.
Investors looking to buy UnitedHealth should place a good till canceled limit order to purchase the stock if it drops to $108.54, which is a key level on technical charts until the end of 2015.
Investors looking to reduce holdings should place a good till canceled limit order to sell the stock if it rises to $123.15, which is a key level on technical charts until the end of 2015.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.













