Shares of Humana are trading at new all time highs this morning.  The stock is up 5% after reporting very solid Q3 results before the opening bell.  $HUM began to perk up on Friday and was poised for an upside breakout by yesterday’s close.  Today the stock has ended a six week consolidation with a powerful breakout.  We expect more upside in the near term as shares push further into new all time high territory. 

At today’s peak $HUM is now up 40% from the January 2018 lows.  This major bull run drove the stock’s weekly MACD indicator well into overbought territory by late September.  The narrow six week consolidation that followed was enough to work off this extreme reading.  $HUM once again has room to run.  The stock should be considered a buy on weakness.  Initial support is in place between $342.00 and $340.00.

Humana isn’t the only name in the Health Care Plan sector moving well today.  The MG523(Health Care Plan Index)is trading at new all time highs as well.  This index includes 12 plan providers.  $UNH, $ANTH and $AET are the largest by market cap in the sector.  All three are trading at new all time highs today.