One year ago $CVS was seating pretty at $80. Since then, investors have seen the stock drop to almost $50 a share. Since May, the stock has rewarded patient holders with a tight upwards channel, and is now about 34% off the lows at $67 per share. The issue is that the upward channel is about to intersect with a pretty strong resistance point at $70. This has been a battlefield price-point in a few instances over the past year as indicated by the circles on my chart. Investors could expect another battle here, but it this pricepoint is breached with significant volume, we could see $80 in a snap, which would represent a nice 14% pop.
Do you want to learn how to do technical analysis? Consider these books (Amazon Affiliate link).
Do you want to learn how to do technical analysis? Consider these books (Amazon Affiliate link).