If Trump Supports That Dajjal’s and Anti-Christ’s Slave (That Shrek Face), I Will Never Support Him.
If Trump Supports That Dajjal’s and Anti-Christ’s Slave (That Shrek Face), I Will Never Support Him.
- Get link
- X
- Other Apps
Technical Analysis of ROST, COKE, and UNH
Introduction
In an environment where market dynamics shift rapidly and volatility can spike on macro announcements, a disciplined technical framework is invaluable. By combining a short-term momentum indicator (the Stochastic Relative Strength Index, or Stochastic RSI) with a medium-term trend indicator (the Moving Average Convergence Divergence, or MACD), traders gain insight into both the immediacy of buying/selling exhaustion and the broader directional thrust. This report analyzes three leading U.S. equities—Ross Stores, Inc. (ROST), Coca-Cola Consolidated, Inc. (COKE), and UnitedHealth Group Inc. (UNH)—on their daily charts. Each section covers current indicator readings, narrative interpretation of near-term bias, a quantified confidence level for the bullish thesis, and a cohesive set of tactical guidelines for entries, protective stops, profit objectives, plus a reminder to exercise heightened caution ahead of tomorrow’s FOMC rate decision.
Indicator Overview
The Stochastic RSI takes the traditional stochastic oscillator approach—tracking where the current value sits relative to a recent high/low range—and applies it to the RSI itself instead of raw price. A reading below 20 signals that RSI is in its lower extreme, while a reading above 80 marks an upper extreme. Crucially, when the %K line (the faster line) crosses above the %D line (the smoothed, slower line) after being below 20, it identifies an oversold momentum reversal point. Conversely, when %K crosses below %D above 80, it flags overbought exhaustion likely to precede a pullback.
The MACD calculates the difference between two exponential moving averages (EMAs)—a faster 12-period EMA and a slower 26-period EMA—to derive the MACD line. A nine-period EMA of that line becomes the signal line. When the MACD line rises above its signal line (a “golden cross”), it demonstrates that bullish momentum is accelerating; when it falls below (a “death cross”), it indicates bearish momentum gaining force. The vertical histogram bars, which plot the distance between the MACD and signal lines, provide a clear visual of momentum strength: expanding positive bars confirm an uptrend, while widening negative bars confirm a downtrend.
Together, these two indicators deliver a robust dual-lens approach. The Stochastic RSI zeroes in on extreme momentum swings—often catching reversals before price structures are evident—while the MACD confirms whether those swings align with a sustainable trend.
Ross Stores, Inc. (ROST) Analysis
On the daily chart for ROST, the Stochastic RSI %K line recently climbed out of oversold territory (below 20) and crossed above the smoother %D line, settling around the mid-40 level. This shift suggests an initial unwinding of bearish exhaustion and the return of buying interest. What makes this particularly meaningful is the speed of the move: a relatively steep ascent of the %K line over three sessions indicates strong short-term buying pressure. Historically, similar setups in ROST have preceded multi-day retracements or trend continuations, especially when broader retail sentiment turns positive.
Simultaneously, the MACD line performed a golden cross over the nine-day signal line. While the resulting histogram bar is modestly positive—indicating that the separation between MACD and its signal is still minimal—it nonetheless confirms that the intermediate-term trend is shifting upward. In many cases, ROST’s MACD golden crosses have aligned with the commencement of three- to five-week uptrends, particularly when the histogram grows consecutively over several sessions. Traders should monitor whether the histogram sustains progressive increases, as a series of expanding bars would signal mounting bullish conviction.
Further reinforcing the bullish picture, price action on ROST has formed a tight consolidation just above the $140 level over the last four sessions, with intraday lows holding the prior support zone. This kind of base formation often culminates in a breakout when coupled with volume expansion. Therefore, a daily close above $145 on volume exceeding the ten-day average would mark the transition from a consolidation phase into a trending move.
On this basis, a confidence level of 72% is assigned to a bullish entry in ROST. Traders looking to capitalize should consider entering on a confirmed breakout—defined as a daily close above $145 with volume at least 10% greater than the recent ten-day average. The protective stop-loss can be placed just below the consolidation low around $138, thereby capping risk at roughly 1.5–2% of position size. Profit targets may be set first near $150, which has historically acted as resistance, and then at $155–$160, where supply has previously emerged.
Coca-Cola Consolidated, Inc. (COKE) Analysis
OKE’s daily readings reveal that the Stochastic RSI lines—%K at 0.00 and %D at 1.62—are pinned in the extreme oversold zone, with %K still below %D. This indicates that short-term selling pressure remains dominant and that no bullish reversal has yet been signaled by the oscillator. Until the %K line crosses decisively above %D and exits the 0–20 range, any attempted bounce is vulnerable to failure.
In stark contrast, the MACD tells a clear bearish story: the MACD line sits at –28.82, below its signal line at –21.41, generating a histogram of –7.41. The negative, widening histogram confirms that intermediate-term momentum is still firmly to the downside, with no relief in sight until the bars begin to contract.
From a price-action standpoint, COKE has carved a down-sloping channel over recent weeks, defined by lower highs and lower lows. Only when the Stochastic RSI %K line climbs above %D and out of oversold territory and the MACD histogram begins to narrow (moving toward zero) should traders consider a long entry. A decisive break above the channel’s upper trendline—approximately $1,150—on above-average volume would serve as a clean trigger, with a protective stop just below the recent low near $1,120. Until both conditions align, respect the prevailing downtrend and avoid premature longs.
UnitedHealth Group Inc. (UNH) Analysis
UNH’s daily Stochastic RSI is at extreme lows (with %K at 1.78 and %D at 0.99), and crucially, the %K line has just edged above %D. This early crossover in such deeply oversold territory hints at an incipient stalling of selling pressure—potentially the first sign of a reversal. In similar instances on UNH’s chart history, this signal has often preceded a multi-day rebound of 3–5%, provided the MACD does not contradict.
On the MACD front, the line remains substantially below its signal line (–33.17 vs. –24.15), with a histogram reading of –9.02. This indicates that the broader trend is still decisively bearish and has significant downward momentum. Past patterns suggest that until the histogram begins to form progressively less negative bars—indicating waning selling intensity—any rally is vulnerable to failure.
Price action for UNH over the past month shows a steep drop from $445 to a low near $395, carving a pronounced downtrend. A base or consolidation near the $395–$400 level, evidenced by tightening price ranges and reduced average true range (ATR), would support the case for a reversal. A convincing daily close above $410—especially if accompanied by a volume increase of at least 15% over the ten-day average—would provide a structural breakout that dovetails with both Stochastic and MACD confirmations.
Because of the mixed signals—early momentum crossover against a strong negative trend—the confidence level for a bullish entry in UNH is set at 40%. Traders who choose to engage should wait for a golden cross on the MACD and confirmation from price breaking above $410 on high volume. A stop-loss just below $395, where the down-leg is likely complete, would control risk. Upside objectives could be staged at $420, then $440, aligning with prior support-turned-resistance levels.
FOMC Rate Decision Caution
It is critical to note that tomorrow, Wednesday, May 7, 2025, the Federal Open Market Committee will announce its latest interest rate decision. Such events notoriously inject elevated volatility into equity markets, often triggering rapid price swings that can momentarily invalidate technical setups. Traders should therefore consider reducing position sizes, tightening stop-loss levels, or sitting out new entries entirely until after the announcement. If holding positions, prepare for potential whipsaw action and avoid adding to positions during the immediate post-announcement period.
Conclusion
By synthesizing the Stochastic RSI and MACD readings on daily charts, we identify Ross Stores (ROST) as the most compelling long opportunity—backed by aligned momentum and trend signals—while Coca-Cola Consolidated (COKE) remains under bearish control and demands patience for a clear reversal confirmation. UnitedHealth Group (UNH) shows tentative signs of a bottom but requires robust MACD validation. Adhering to disciplined entry triggers, protective stop placements, volume-backed confirmations, and an acute awareness of tomorrow’s FOMC announcement will help manage risk and improve the odds of success when trading these setups.
Disclaimer:
The information and analysis provided herein are for educational and informational purposes only and do not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Technical indicators such as Stochastic RSI and MACD are based on historical price data and may not predict future performance. All trading involves risk, including the loss of principal. Readers should conduct their own due diligence and consider their individual financial objectives, risk tolerance, and consult with a qualified financial advisor before making any trading or investment decisions. Past performance is not indicative of future results.
Enjoyed this article?
Take your trading further with exclusive premium content, including stock picks, fundamental analysis, and DCF valuations — available to purchase individually.
👉 Darrisman's – Access the full content now!
Other related post
Markets Cheer Dovish Fed Outlook After Weak Jobless and ISM Data
Wage Growth Slows, Payrolls Beat Expectations: What It Means for The Fed’s Policy
Comments
Post a Comment