UnitedHealth Group (NYSE: UNH) has been under significant pressure recently, with its stock price experiencing a notable decline. This downturn follows the tragic death of the UnitedHealthcare CEO in New York City on December 4, which has contributed to a 20% drop in the company's stock since that date. The stock has also been affected by regulatory pressures from Washington on pharmacy benefit managers (PBMs), which are third-party administrators overseeing drug programs for major insurers like UnitedHealth. Recent legislative proposals included in the federal budget bill have focused on rebates and transparency in reporting, adding to the stock's challenges.

Despite these headwinds, UnitedHealth's stock found some buying interest at the 200-week moving average during a recent trading session, a level that has historically provided strong support. Investors are advised to watch crucial support levels on UnitedHealth's chart around $460 and $430, while also monitoring key resistance levels near $550 and $610. The stock's decline has been exacerbated by a broader market sell-off, with UnitedHealth falling by 2.1% to $489.25 on Thursday, marking a 7% decline since January.

Analysts have noted that while the recent legislation gives PBMs time to adjust their business models, the impact on insurers' profits is expected to be minimal. However, the stock's technical indicators suggest a bearish trend, with the price breaking below key support levels and the Relative Strength Index (RSI) indicating oversold conditions.

In terms of financial performance, UnitedHealth Group reported Q3 2024 earnings per share (EPS) of $7.15, beating estimates of $7. The company's revenue reached $100.8 billion, surpassing analyst expectations, driven by strong growth in its Optum and UnitedHealthcare segments. Despite these positive results, the company's medical loss ratio (MLR) increased to 85.2%, reflecting higher medical costs, particularly in Medicare and Medicaid services.

Looking ahead, investors should keep an eye on UnitedHealth's upcoming earnings report on January 10, 2025, and any developments in the regulatory landscape that could impact the company's operations. While the stock is currently in a bearish phase, key support levels could provide opportunities for long-term investors if the stock consolidates or rebounds.