CVS finds buyers again around 64.36
CVS Health Corporation (CVS) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
CVS ended the week -1.51% lower at 65.81 after gaining $0.26 (0.4%) today, slightly outperforming the S&P 500 (-0.01%). Trading up to $0.82 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CVS as at Jan 11, 2019):
Friday's trading range has been $1.46 (2.24%), that's below the last trading month's daily average range of $2.17. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CVS.
Prices are trading close to the key technical resistance level at 66.24 (R1). After having been unable to move lower than 64.56 in the previous session, CVS Health found buyers again around the same price level today at 64.36. The last time this happened on January 3rd, CVS gained 2.44% on the following trading day.
While the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Further selling might move prices lower should the market test December's nearby low at 62.06.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for CVS Health. Out of 556 times, CVS closed higher 55.40% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.47% with an average market move of 0.31%.