CVS breaks back below 20-day moving average
CVS Health Corporation (CVS) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, CVS ended the week -0.27% lower at 71.37 after losing $0.63 (-0.88%) today, notably underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 71.94, the market confirmed its breakout through the prior session low after trading up to $1.68 below it intraday.
Daily Candlestick Chart (CVS as at Feb 14, 2020):
Friday's trading range has been $1.76 (2.45%), that's slightly above the last trading month's daily average range of $1.65. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CVS.
After trading as low as 70.26 during the day, CVS Health found support at the 100-day moving average at 70.49. The last time this happened on January 30th, CVS actually lost -2.71% on the following trading day. The stock closed back below the 20-day moving average at 71.62 for the first time since February 7th.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for CVS Health. Out of 430 times, CVS closed higher 59.30% 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 56.51% with an average market move of 0.36%.