CVS closes higher for the 2nd day in a row


CVS Health Corporation (CVS) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team

Highlights

CVS breaks above 50-day moving average for the first time since August 19th
CVS closes higher for the 2nd day in a row

Overview

Moving higher for the 2nd day in a row, CVS ended the week 1.11% higher at 60.25 after gaining $0.77 (1.29%) today, outperforming the S&P 500 (0.34%).

Daily Candlestick Chart (CVS as at Oct 23, 2020):

Daily technical analysis candlestick chart for CVS Health Corporation (CVS) as at Oct 23, 2020

Friday's trading range has been $0.91 (1.52%), that's below the last trading month's daily average range of $1.20. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CVS.

Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on September 22nd, CVS lost -1.27% on the following trading day.

The stock managed to close above the 50-day moving average at 60.04 for the first time since August 19th.

Although the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.

Further buying could move prices higher should the market test September's nearby high at 62.04.

Among the eight 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 431 times, CVS closed higher 58.47% 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 57.08% with an average market move of 0.27%.


Market Conditions for CVS as at Oct 23, 2020

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