Don't Ignore This Chart!

UNH becomes overbought

United Health (UNH) remains in a clear, and strong, uptrend, but the advance could be getting frothy as RSI becomes overbought and red candlestick takes shape on Wednesday. Notice that RSI moved above 70 for the second time in two months (blue arrows). Tuesday's gap is holding for now. A move below the gap would make this an exhaustion gap.

100120unh Click this chart for details
Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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