Humana Inc (NYSE:HUM) has been a strong momentum stock.
But we’ve seen several momo stocks get hit hard recently. Will Humana fall prey to a correction soon?
This is just another name to add to the ever increasing list of parabolic moves. It’s up from $150 to $340 in just over 2 years time!
So what makes me cautious here?
Mathematics. When you do the math, this is as good a place as any for the stock to at least pause… or make a sharp correction.
Let’s review the numbers of interest (see the charts below for more information).
- 1.582 = 783.99Hz = G# musical extension
- The 150 Low * Square Root of 5 = 335
- 18.48 Squared = 341 (beginning of the bull run)
- Multiple Vectors and a measured move point to 337 as major resistance
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.