The USD 64.85 support, currently tested, should allow Humana to rally again.

From a fundamental viewpoint, Humana is undervalued in terms of enterprise value. Based on the current price, its market capitalization, minus its net debt, represents 0.17 times its revenues. The PER is 8.62x in 2013 and 7.64x in 2014.

Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average, currently at USD 74, shows. Nevertheless, technical indicators show an oversold situation. Prices are near to the USD 66.85 support which is corresponding to the bullish trend line. This configuration should help the security to come back to the USD 74.35 short term resistance.

The trading strategy can benefit from the proximity of the strong support currently tested in order to buy Humana in a good timing. Investors might place a stop loss order at USD 64.1 in order to avoid important losses.