Anthem, Inc. (ANTM)

Anthem stock forecast: buy or sell

Anthem stock outlook

  • Counting today, it's been 3 consecutive sessions in red for Anthem. Price closed today at $245.49 after slightly moving a -0.79%.
  • The price is currently under the lower Bollinger band, which usually indicates a short-term bounce that you should not try to trade
  • From the chart point view, price is drawing a scaled uptrend since last March with higher tops and higher bottoms. This rally marked a 44.51% gain
  • Anthem, Inc., through its subsidiaries, operates as a health benefits company in the United States. It operates through three segments: Commercial & Specialty Business, Government Business, and Other.
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Disclaimer:
The opinions written in this article are personal and not recommendations for you to buy or sell stocks. The author of this paper does not have any knowledge of the individual scenarios of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are expressed for learning motives only

Anthem stock charts overview

Should I buy Anthem stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is ANTM stock a buy?

In the current situation of Anthem there is not any eligible buy setup. This doesn't mean we expect a selloff for ANTM in the next few days, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell Anthem stock?

When you own stock shares with some profit, it's really hard to decide the best moment to sell and get your benefits. Trading strategies prevent us from making impulsive decisions based on our personal feelings or the noise surrounding the market. Our trading system selects very simple strategies to guide us on when is the best time to sell a stock. Be aware that these strategies should not be used for selling short Anthem stock

A golden rule is that you must never mantain an operation that results in losses greater than those expected by the time of the buy. When to sell shares must always be dictated by the stop-loss (automatic or manual)

Is it time to sell Anthem stock?

In the current situation of Anthem there is not any eligible sell setup, so Anthem stock holders with operations in green can keep their positions

Price broke down below last bottom

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Analysts' recommendations to buy or sell Anthem stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month we couldn't find any rating for Anthem

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Technical analysis

Since last March, Anthem has been printing an uptrend that so far marked a gorgeous 44.51%. During this uptrend, the price gave some buy points on the breakouts. Latest low was in mid-July, when price bounced at $252.85. Yesterday, the uptrend got broken when price moved downward under the $252.85 support

SMAs overview

Moving averages are tools for traders to gauge market momentum. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

Supports and resistances

Investors use supports and resistances to find price points on a chart that tend to work as barriers, containing the price of an asset to move in certain direction. A support level is a level where the price tends to find support as it falls. Price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down this level, it is likely to continue declining until meeting another support level. On the other side, resistances are where the price tends to find a curb as it rises. Again, this means that the price is more likely to "bounce off" at this level, and if it finally ruptures this level, the price will rally easily until it hits the next resistance

The current resistance levels are:

  • R1: $249.99 (1.83% above)
  • R2: $252.85 (3% above)
  • R3: $253.43 (3.23% above)
  • The current support levels are:

  • S1: $240.18 (-2.16% below)
  • S2: $238.40 (-2.89% below)
  • S3: $235.94 (-3.89% below)
  • Bollinger bands

    This is an indicator that was designed in the 1980s by John Bollinger. In essence, the Bollinger Bands are bands that move around a centralmoving averagediffering in distance from the bottom to the top depending on market volatility. They are usually plotted by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Price readings above or below the Bollinger Bands indicate that the price has has trended strongly to extreme upward or downward values. At this point, the price is below the upper band, and that should mean a possible near-term bounce off (at least) until it is back above the band

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that gauges price action to detect when the share or financial asset is oversold or overbought. Like other oscillation indicators, the RSI ranges from 0% to 100%. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in the late 1970s

    When the relative strength (RSI) fluctuates for so long below 70 and above 30, without showing moments of overbought and oversold, the indicator becomes of little use, and we find ourselves in one of these situations.

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    Earnings and financials

    In late July, Anthem had the quarterly shareholders event and posted the 2nd-quarter report. Anthem beat Wall St estimates and presented an Earnings per Share of $9.20, that is a 3.6% improvement compared to the forecasts of $8.88. Reported revenues were $29.3 billion compared to estimates of $29.4 billion.

    This compares to earnings of $4.64 per share a year ago, so reported EPS is an increase of 98.28%. Sales skyrocketed a 14.91% on an annualized basis in the second-quarter, from $25.5B to $29.3B last quarter.

    Anthem is hosting the earnings call on late next October. Wall Street analysts predict earnings of %s a share of $4.13, that is a 55.11% lower than previous quarter. Financial reporting day has a more than usual risk for stock investors as the results provided can gap up or down the price with very low liquidity and not respecting your buy or stop-loss orders. You can probably obtain more information about the earnings conference call and the earnings reports on the Investor Relations section of its website: http://www.antheminc.com.

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