CVS closes above its opening price after recovering from early selling pressure


CVS Health Corporation (CVS) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team

Highlights

CVS closes above its opening price after recovering from early selling pressure
CVS finds buyers at key support level
CVS closes higher for the 2nd day in a row
CVS finds buyers again around 63.96
CVS closes within previous day's range after lackluster session

Overview

Moving higher for the 2nd day in a row, CVS ended the month -0.92% lower at 64.97 after gaining $0.55 (0.85%) today, underperforming the S&P 500 (1.54%). Trading up to $0.75 lower after the open, the share 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 Jun 30, 2020):

Daily technical analysis candlestick chart for CVS Health Corporation (CVS) as at Jun 30, 2020

Tuesday's trading range has been $1.31 (2.02%), that's below the last trading month's daily average range of $1.79. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CVS.

Two candlestick patterns are matching today's price action, the Bullish Spinning Top and the Tweezer Top which are both known as bullish patterns. The last time a Bullish Spinning Top showed up on June 15th, CVS gained 3.57% on the following trading day.

After trading down to 63.96 earlier during the day, CVS Health bounced off the key technical support level at 64.25 (S1). The failure to close below the support could increase that levels importance as support going forward. After having been unable to move lower than 63.87 in the previous session, the stock found buyers again around the same price level today at 63.96.

The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.

Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Tweezer Top" stand out. Its common bullish interpretation has been confirmed for CVS Health. Out of 8 times, CVS closed higher 87.50% 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 six trading days, showing a win rate of 75.00% with an average market move of -0.19%.


Market Conditions for CVS as at Jun 30, 2020

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CVS closes within prior day's range

Jul 13, 2020
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