Company Description: Humana Inc. offers various health and supplemental benefit plans in the United States. Its Government segment comprises beneficiaries of government benefit programs and operates in three lines of businesses: Medicare, Military, and Medicaid. The Medicare program offers hospital and medical insurance benefits to persons of age 65 and over and some disabled persons under the age of 65. The Military program provides health insurance coverage to the dependents of active duty military personnel and to retired military personnel and their dependents. The Medicaid program is a federal program that is state-operated to facilitate the delivery of health care services primarily to low-income residents. The Commercial segment consists of members enrolled in its medical and specialty products marketed to employer groups and individuals. This segment provides health maintenance organization products that provide prepaid health insurance coverage to its members through a network of independent primary care physicians, specialty physicians, and other health care providers; preferred provider organization products, which are offered primarily to employer groups and individuals; and administrative services only products that are offered to employers who self-insure their employee health plans. It also offers various specialty products, including dental, vision, and other supplemental products, as well as disease management services. As of December 31, 2009, Humana Inc. had approximately 10.3 million members enrolled in medical benefit plans and approximately 7.2 million members enrolled in specialty products programs. The company markets its products through various channels, including television, radio, the Internet, telemarketing, and direct mailings. In addition, Humana Inc. has strategic alliances with Wal-Mart Stores, Inc., State Farm, and United Services Automobile Association to market its products. The company was founded in 1964 and is headquartered in Louisville, Kentucky.

Our Analysis: The shares of Humana, Inc. 'HUM' moved sharply lower on heavier than normal trading volume. In the process they closed below a recently established downside support level. This is a bearish trading signal. The shares of 'HUM' should continue to move lower and test $43.89/share, the point from which they gapped higher on the open of trading on January 4th of this year. If the shares of 'HUM' close below that level, then they should continue to move lower and test $40.31/share, a point of downside support established on December 4th of last year. I see upside resistance on the shares of 'HUM' @ $45.35/share, and have set my stops accordingly @ $45.79/share.