Indications Suggest CVS HEALTH CORP (NYSE:CVS) Could Be on the Verge of a Breakout.

Our stockscreener has identified a possible breakout setup on CVS HEALTH CORP (NYSE:CVS). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NYSE:CVS for potential opportunities.

Analyzing the Technical Aspects

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

Overall CVS gets a technical rating of 9 out of 10. Both in the recent history as in the last year, CVS has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• CVS is one of the better performing stocks in the Health Care Providers & Services industry, it outperforms 79% of 110 stocks in the same industry.
• CVS is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so CVS slightly outperforms the market at the moment.
• In the last month CVS has a been trading in the 64.00 - 68.87 range, which is quite wide. It is currently trading near the high of this range.
• Looking at the yearly performance, CVS did better than 90% of all other stocks. However, this relatively good performance is mostly due to a recent big move.

For an up to date full technical analysis you can check the technical report of CVS

Looking at the Setup

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for CVS is 8:

CVS has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 67.99. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 67.95, a Stop Loss order could be placed below this zone.

How to trade CVS?

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

Of course, there are many ways to trade or not trade CVS and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.