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Fan Yang

CVS Health Corp. (CVS) Building a Price Bottom; But Upside is Likely Limited Against Secular Bear Market

In early March, $CVS was falling sharply towards the $52 area. 

Will CVS's Innovative Efforts Save its Shares From Further Bleeding?

This is a name that has been bearish for more than 3 years after topping around $113.50. After shedding more than 50% from that top, price was at a channel support. A few months later, price still remains above the $52 handle, and has been trading in a consolidation range between roughly $52 and $57.75.

CVS Daily Chart

(click to enlarge)

Consolidation Range:
- Price has been trading sideways, but that does not mean we have a price bottom.
- A break above $58 would complete a price bottom and signal some upside, but I suspect this upside would be limited. 
- I think there would be some resistance around $63, and would limit any bullish outlook to the $70 handle, which is right around a previous support/resistance pivot. 
- Looking at the weekly chart below, I can see further downside to at least $44, and maybe to $40.

CVS Weekly Chart

(click to enlarge)

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