Video Chart Analysis on UNH, MCD, SGRY & COST

Our Stock Waves Charts of the Day Video features UnitedHealth Group Incorporated (UNH), McDonald's Corporation (MCD), Surgery Partners, Inc. (SGRY), and Costco Wholesale Corporation (COST.

UNH:  We had identified that price had likely topped in a (B) wave when we got that sharp drop at the end of last month, viewed it as a possible 5 waves down completing, and were looking for a corrective bounce as a wave 2 of (C) down.  We don't have an indication of a top in place for this wave just yet, and it is possible we stretch a little higher, maybe hit the 61.8% extension at 257.31, as it sets up for a possible short, with a stop ideally above the Feb high or, if you want a tighter stop, above the 78.6% extension at around 264.

MCD:  We've been watching this as a 1-2, 1-2 set-up to the upside within wave (c) of 5.  It had a very clean a-b-c down into the 61.8% retrace as wave ii, then bounced and hit the 38.2% extension, which is common for 1 of iii.  That means the next consolidation here could be wave 2 of iii, with support between the 38.2% and 61.8% retrace, which 181.29 to 180.13.  That could be a decent entry to the long side using a stop underneath the March low, and looking for 191 as the target for wave 3 of iii.

SGRY has a nice 1-2, 1-2 potential on the daily chart, with price curling out very well from that 50% retrace in what can be a possible a micro 5 waves to the upside again.  Consolidations can be bought with a stop underneath the March low looking for overall a longer-term swing trade to around 26 as wave (3) of 3.

COST has been doing very nicely filling out the suggested fifth wave we've been tracking since price bottomed in December.  The chart has potential to grind out further upside for several more months, and can basically fill out a series of 4th and 5th waves until it reaches the 270 target region for the larger fifth wave to the upside. The strongest portion of the move following earnings seems to be filling out as wave (iii) of iii, with the123.6% extension at 241.50 the next target.

See our Stock Waves Charts of the Day Video.

Garrett Patten covers both U.S. and international equity indices as well as stocks for ElliottWaveTrader.