Back in late December I added a boring drugstore (WBA) for a trade that worked well off the bottom. Here is another boring drugstore in a different type of setup, having been bullish since November but attempting a significant breakout. Let’s look at the daily, weekly and monthly charts for some perspective.
CVS daily has created tentative support at 75 by taking out the last two highs. It’s also in a pleasing pattern after forming an inverted shoulder on the right side to go with the one on the left side. RSI and MACD are positive and not overbought.
The weekly dials out to a basing pattern similar to what we have been viewing in fellow healthcare related stock, CAH which, by the way furthered its breakout today. Again, RSI and MACD are positive and not overbought.
The monthly chart advises a measured target to a new high if it can accomplish this breakout. I have not colored the breakout area green as the monthly gives perspective that it’s actually still considered to be dealing with the resistance area, although it’s dealing with it well so far. And again, positive RSI and MACD, and not overbought. I am interested in adding this one.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the technical parameters are already noted. These updates are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.