Humana Inc. (HUM) stock has positive characteristics on its daily and weekly charts, but this healthcare insurance provider has lagged its rivals Aetna Inc. (AET), Anthem, Inc. (ANTM) and UnitedHealth Group Incorporated (UNH) year to date and since last year's presidential election. Even so, Humana stock has gained 24.7% year to date, with a bull market gain of 46.2% since the election.

Humana provides diversified healthcare insurance plans to both individual and group accounts, including the growing Medicare Supplement segment. Analysts expect the company to post earnings per share of between $3.27 and $3.32 when it reports results before the opening bell on Wednesday.

Guidance will be important, as the stock is not cheap fundamentally. Humana has an elevated P/E ratio of 20.93 and offers a paltry dividend yield of 0.64%. Humana stock will likely react to guidance, which will put technical momentum to a test.

The daily chart shows that Humana has been above a "golden cross" since Nov. 15, 2016, as investors viewed the Trump election victory as positive for the healthcare insurers. Humana shares closed at $198.82 on Nov. 15 as the stock's 50-day simple moving average crossed above its 200-day simple moving average, indicating that higher prices lie ahead. The stock set its all-time intraday high of $264.56 on Oct. 27, 2017. (See also: Aetna Tops Q2 Earnings, Revenues, Raises 2017 Guidance.)

The weekly chart for Humana

Technical chart showing the performance of Humana Inc. (HUM) stockCourtesy of MetaStock Xenith

The weekly chart for Humana is positive, with the stock above its five-week modified moving average of $250.46. The 200-week simple moving average, or the "reversion to the mean," is $175.49, last tested during the week of Sept. 10, 2010, when the average was $49.49, just as Obamacare was beginning. The 12 x 3 x 3 weekly slow stochastic reading is projected to rise to 62.98 this week, up from 57.81 on Nov. 3.

Given this chart, my trading strategy is to buy weakness to my quarterly and annual value levels of $233.51 and $204.56, respectively, and to reduce holdings on strength to my monthly and semiannual risky levels of $265.23 and $274.06, respectively. (For more, see: Opinion: Aetna Lays Out Its Insurance Value for CVS.)



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