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- 1 Elevance Health stock price closed at $435.42 while witnessing a loss of -2.65% during the last intraday trading session.
- 2 ELV stock has fallen below 20, 50, 100, and 200-day exponential moving averages.
- 3 The year-to-date return of Elevance stock is -14.40%.
Elevance (ELV) stock price gained bullish momentum during the middle of July, rising from the support level of $412. The stock price surged and attempted to close above the resistance level of $480, but the move was halted as soon as the price reached near $478.
After the rejection, ELV’s stock price fell and formed support at $438. However, ELV share price regained bullish momentum for retesting at $478. The bullish move was again disrupted as the price reached $454, and it gained bearish momentum.
The 29 September candle was strongly bearish and broke the recent support of $438. If the next candle can break the low of the last candle, the Elevance stock price might melt toward the next support level of $412.
Conversely, if the price re-enters the previous zone, it might rise and retest the resistance level of $454. However, the current market structure shows a strong confluence of bears over the price.
Fundamentals And Merger’s
The fundamental of Elevance Health shows a thriving company. The ELV stock’s valuation is not excessive; Elevance Health’s forward price to earning ratio is 11.72 today, less than the healthcare plans industry average forward price to earning ratio of 13.8.
The mega-merger between Elevance Health and Blue Cross Blue Shield of Louisiana (BCBSL), worth $2.5 Billion, has been temporarily paused after several raised concerns. The temporary pause is expected to allow the companies to address questions raised by policymakers and lawmakers.
Elevance and BCBSL agreed to the acquisition in January 2023 to develop their existing partnership. BCBS Louisiana serves 1.9 Million policyholders in the state, per reports.
The merger was expected to bring more footfall to Elevance Health’s network and expand its Healthy Blue business. Its healthcare services business, Carelon, was expected to gain from this deal significantly.
Before filing for the acquisition, the companies must continue working with customers, providers, leaders, and policyholders. Concerns from state regulators regarding increased premiums, lower provider reimbursement, reduction in competition, and other factors are creating hurdles for the deal.
Will ELV Stock Price Fall To $412?
The stock price has negatively crossed all the major exponential moving averages, suggesting bearish momentum. The Chaikin money flow score has dropped below the 0 mark and stands at -0.11, indicating weakness in the market.
The relative strength index has also melted below the 50 neutral mark and trades at 39.52, implying strong participation of bears in the market.
Conclusion
Technical parameters favor the selling side, but traders should wait for the next candle to open before looking for selling bids.
Technical Levels
Major Support: $412 and $400
Major resistance: $454.50 and $478
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
