Watch These Humana Price Levels After Stock Soars on Medicare Payment Increase
Key Takeaways
Humana ( HUM ) shares jumped in extended trading on Monday after the federal government said it would pay Medicare insurers more next year than previously expected .
The Centers for Medicare & Medicaid Services (CMS) said payments for 2026 Medicare Advantage health plans run by private insurers will increase by 5.06% on average, more than the 2.83% the government initially proposed in January. The boosted rates will benefit health insurance giants such as Humana, which has grappled with rising medical expenses related to government-backed health plans.
Humana shares trade flat since the start of the year as of Monday’s close but have slumped nearly 20% over the past 12 months, weighed down by increasing medical costs, downgraded Medicare offerings , and moderating membership signups. The stock rose 11% to $283.50 in after-hours trading Monday.
Below, we take a closer look at Humana’s chart and apply technical analysis to identify key price levels worth watching out for.
Symmetrical Triangle in Play
Since plumbing their 52-week low last October, Humana shares have traded within a symmetrical triangle , a chart pattern indicating a period of consolidation before the price breaks out.
The stock broke down below the pattern in Monday’s trading session before staging an impressive intraday reversal to close above its lower trendline, signaling a bullish shift in investor sentiment.
Indeed, the shares look set to open sharply higher on Tuesday morning, potentially setting the stage for a longer-term upside trend reversal.
Let’s identify three key technical overhead areas on Humana’s chart and also locate an important support level worth monitoring if the stock resumes its established downtrend .
Key Overhead Areas to Watch
A breakout above the symmetrical triangle’s upper trendline could see the shares initially test the psychological $300 area. This level may provide significant overhead resistance near the 200-day moving average (MA) and several prominent peaks and troughs on the chart stretching back to early April last year.