Daily Stock Report

CVS Health Corp. - (CVS) - May 19, 2021 

Drugstore chain CVS Health (CVS) has seen its relative strength improve significantly recently, this month, the shares have snapped out a long-term downtrend within the SIA S&P 100 Index Report and have moved up into the Yellow Neutral Zone from the red zone for the first time since January of 2020. Yesterday, CVS finished in 37th place, up 12 places on the day and up 37 places in the last month.

A major breakout is underway in CVS Health (CVS) shares this month. For the first time since the fall of 2016, CVS has broken out over $75.00, completing a multi-year base building process with a bullish Ascending Triangle breakout. The start of a new upward trend has been confirmed with the shares quickly advancing up into the high $80s. 

Based on a cluster of the shares’ 2015 peak, the $100.00 round number and a measured move from the triangle, initial upside resistance appears in the $97.50 to $102.50 area. Initial support appears near $84.00 then the $75,00 breakout point.  

CVS Health (CVS) shares have been under renewed accumulation since November, staging a series of bullish Double Top breakouts and establishing and uptrend of higher lows. This month, the most significant breakout has occurred with the shares clearing $76.50 for the first time since 2016, and continuing to climb, building a high pole. 

Vertical and horizontal counts suggest potential upside resistance tests in the $95.00 to $97.00 zone, then near $107.00 with the $100.00 round number in-between them. Initial support appears near $81.10 based on a 3-box reversal. 

With a bullish SMAX score of 7, CVS is exhibiting near-term strength against the asset classes.

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