Shares in Humana (HUM) will likely remain on 澳洲幸运5官方开奖结果体彩网:watchlists after plummeting Wednesday to levels not seen in more than four years after the 澳洲幸运5官方开奖结果体彩网:Centers for Medi🥃care and Medicaid Services (CMS⭕) downgraded a large portion of the health insurer’s Medicare offerings.

The change means that only 25% of Humana’s 澳洲幸运5官方开奖结果体彩网:Medicare Advantage members will be enrolled in plans rated four stars or higher next year, a significant drop from 94% in 2024, an outcome likely to have a major impact on the quality bonuses Humana receives from the government, which in turn could pressure the health insurer’s earnings.

Humana shares fell 12% to close at $246.49, after dropping as low as $213.31 during Wednesday's session. The company’s stock has plunged around 46% since the start of the year as ongoing challenges surrounding the Medicare Advantage 澳洲幸运5官方开奖结果体彩网:health insurance program weigh on its share price.

Below, we take a closer look at Humana’s 澳洲幸运5官方开奖结果体彩网:weekly chart and use 澳洲幸运5官方开奖结果体彩网:technical analysis to point out important longer-term price le🦄vels worth watching.

Descending Channel Test

Humana shares have traded within a 澳洲幸运5官方开奖结果体彩网:descending channel since July last year, with Wednesday's sell-off testing the pattern’s lower trendline. 

Importantly, the move has occurred on the highest weekly volume since mid-July 2016, indicating conviction by larger market participants behind🍨 the selling.

If the stock’s price stages a decisive close below the ♛channel this week, investors should monitor three specific lower areas on Humana’s cha💮rt.

Key Lower Chart Levels to Watch

The first area to watch out for sits around $232, a location where the shares could encounter support near a 澳洲幸运5官方开奖结果体彩网:horizontal line connecting several pullback lows from July to November 2017 with price action around prominent troughs that formed on the chart in April 2019 a𝐆nd March 2020.

Interestingly, this area also sits in close proximity to the projected 澳洲幸运5官方开奖结果体彩网:price target of a bar🎶s pattern that takes the stock’s impulsive move lower from November to April and positions it from the Ju⛦ly high.

A 澳洲幸运5官方开奖结果体彩网:breakdown below this level could see a decline to the $218 area, where the shares may attract buying interest near the 2015 and 2016 peaks that formed within the stock’s൲ longer-term u✨ptrend.

Further selling opens the door to a retest of lower support around $190, an area on the chart where 澳洲幸运5官方开奖结果体彩网:buy-and-hold investors may look for 澳洲幸运5官方开奖结果体彩网:entry points near a trendline joining a range of comparable trading levels from July 2015 to February 201꧟7.

Important Overhead Chart Level to Monitor

If the stock stages a reversal and moves higher, investors should keep a close eye on the $300 level. As well as possibly facing selling pressure around the 澳洲幸运5官方开奖结果体彩网:psychological round number, the shares could also encounter overhead 澳洲幸运5官方开奖结果体彩网:resistance from the August 2019 澳洲幸运5官方开奖结果体彩网:swing high and April 2024 swing low.

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