UnitedHealth's 80% Rally: Now Comes the Wait
I've closed all of my $UnitedHealth(UNH)$ long positions.
Over the past year, I've remained consistently bullish on UnitedHealth. Last July, we patiently waited for the stock to enter the Smart Money Zone before building long-term positions. That discipline paid off, with the stock rallying roughly 80% from those levels.
Now it's time to show that same patience again.
While the long-term trend remains bullish, I believe the stock is approaching a short-term top, making the current risk/reward less attractive. Nothing has changed about the broader outlook, but after such a strong advance, I'd rather lock in gains than chase additional upside.
Looking further ahead, I still believe UNH has the potential to trade back toward $600 over the next 12 to 24 months. The higher-timeframe structure remains constructive, and I continue to view the company favorably over the long run.
That said, I also think the stock could enter a redistribution phase, with the possibility of a 20% pullback over the remainder of the year. If shares revisit the low-$300s, I'll be looking to rebuild a long position.
If that opportunity never comes, that's perfectly fine. The trade has already delivered excellent returns, and there's no need to force a new position. Successful investing is about waiting for high-probability setups—not chasing prices after a strong rally.
The same patience that helped us buy in the Smart Money Zone is the patience that will help us find the next opportunity.
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