Elevance - Short interest declining, buy the dip?The shorts have done extremely well here, dragging the price down by over 34%. ELV has been under severe pressure due to a miss on EPS on their last earnings report. However, they did beat on revenue (by $1.58B) but that did not stop holders exiting their positions.
Unless you're living under a shell, you will know that the entire sector has been under increased public scrutiny following the death of the United Health Group's CEO. President Trump has also had some harsh words for the sector and has appointed RFK in a key position, he is not perceived as a friend of in the industry. The whole industry will likely face further scrutiny over the coming quarters, I don't expect things to change soon.
Whilst there is blood on the streets (quite literally), I do feel that this presents an excellent opportunity for a patient, long term investor, who is happy to buy on the major dips and hold for the longer term. I don't see the stock falling more than 20% of the current price. Short interest has also been declining, so we should see the downside pressure starting to ease.
Looking at the TA, it is not unusual for this stock to drop 30-40% from it's peak before continuing to move up. The 0.382 Fibonacci speed fan has hisotrically held as support on the major dips. We are now dipping below this level but we also have strong support below at a Monthly level along with the Golden Fibonacci support zone.
ELV has historically outperformed the S&P500, so in my opinion this is a good time to think about getting involved in the sector if you have no exposure to Healthcare sector. Or you can wait for the Buy Zone to be hit around $300-330.
Not financial advise, do what's best for you.
