Shares of CVS Health (CVS) topped out in May and have broken below key support around $90. With no short-term signs of a pending reversal, CVS is likely to continue lower toward next chart support around $75. It could take more than some over-the-counter elixir to get CVS moving higher again.
The downtrend on CVS -- a Trifecta Stocks holding -- in this daily chart, below, may not track well with a ruler but prices are pointed down and below the declining 50-day and 200-day simple moving averages. The On-Balance-Volume (OBV) line turned down in May and remains pointed down as the volume of trading in CVS has been heavier on days when CVS has closed lower. There is not a clear bullish divergence between the price action and the momentum study.
One potential positive that should be mentioned is the downside gap made last Friday. After a six-month decline CVS gaped lower and then prices have held steady. This downside gap could become an exhaustion gap if it gets "filled" relatively soon.
In this weekly chart of CVS, below, we get little encouragement for the bulls. Prices are below the declining 40-week moving average line. The weekly OBV line is pointed down and the MACD oscillator has been in bearish territory for the past five months.
The next chart support on this weekly chart is around the $75 level, in my opinion, and this could be the next downside price objective of CVS.