NEW YORK – Shares of health insurance giant Elevance Health, Inc. (NYSE: ELV) are under severe selling pressure today, tumbling significantly in a highly bearish trading session. The stock is currently trading at 33.09, or 8.36%, as of 12:08 PM EDT.
The market day began with a massive “gap down,” as the stock opened at $367.20, a dramatic drop from its previous close of 357.67**, which is alarmingly close to its 52-week low of $357.45.
Volume is already above its daily average, with over 2 million shares traded, confirming the strong conviction behind the sell-off. The stock has since attempted a minor bounce but remains heavily in the red.
Should You Buy or Sell ELV Stock Today?
The stock’s dramatic fall presents a very challenging situation for investors.
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For Potential Buyers: Attempting to buy the stock now is a high-risk strategy often referred to as “catching a falling knife.” The bearish momentum is exceptionally strong. While the price might seem attractive compared to yesterday, there is no sign that the selling has subsided. Prudent investors might wait for the price to show signs of stabilizing or forming a new base before considering an entry.
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For Existing Shareholders: This is a difficult position. The stock has gapped down through numerous potential support levels. Selling now would realize a significant loss, but holding on carries the risk of further declines, especially if the 52-week low is breached.
Our Opinion on the Stock
Elevance Health is experiencing a major negative event, and the market’s reaction is severe. The stock’s price action is overwhelmingly bearish. The most critical level to watch is the 52-week low around $357.45. A decisive break below this support could trigger a fresh wave of selling.
Any recovery attempt will face significant resistance, first at the day’s high of 500, suggesting that analysts will likely be downgrading their ratings and targets in response to today’s news. The outlook is bearish until the stock can prove it has found a bottom.
