CVS Health Corp. (CVS) has traded higher the past two months, similar to the movement of Walgreens Boots Alliance (WBA) . However, the similarities stop there, with shares of CVS trading higher today. Let's take a closer look at the charts and indicators on CVS.
In this daily bar chart of CVS, below, we can see that prices traded sideways from January through September. A quick October to early November selloff happens but prices reverse relatively quickly. CVS is now back above the flat 50-day moving average line and it tested the declining 200-day line earlier today.
The trading volume the past three months has been heavier than the rest of the year and the On-Balance-Volume (OBV) line has generally declined through 2017. Even during the November/December recovery the OBV line has not shown consistently aggressive buying. The Moving Average Convergence Divergence (MACD) oscillator is in bullish territory above the zero line.
This weekly chart of CVS, below, we can see that prices are still below the declining 40-week moving average line but it will not take much of a rally to break above it. The weekly OBV line has been in a downtrend since early 2016 and does not yet show an upside reversal. The weekly MACD oscillator is still below the zero line so buy signals will only mean to cover shorts.
In this Point and Figure chart of CVS, below, we can see a large potential base formation. Gains above $78.26 will turn the chart more positive and may open the way to a longer-term rally to $93.25.
Bottom line: CVS looks like it wants to make a bullish turn around. Traders could consider buying strength -- above $78, above $80 and last above $84. Risk a close below $72 with a $93 price target.