During Friday's "Mad Money" program, host Jim Cramer pointed out several companies that are reporting earnings this week: On Wednesday CVS Health (CVS) reports along with others. Cramer was bullish on CVS.
We reviewed the charts of CVS on March 17, writing that "Technical analysis can be subjective at times. I could easily write something bearish about CVS and no one would blink. I can also find some bullish clues Monday morning, but the weakness in the broad market could easily dominate. For now, let's keep an open mind that CVS has corrected enough and that buyers could be attracted around current levels." As it turns out, that was the low for CVS. 
Let's look at some updated charts and indicators.
In this daily Japanese candlestick chart of CVS, below, we can see the low in the middle of March and the successful retests of that low in the second half of the month. Prices moved higher from late March to late April and have corrected slightly in recent sessions. The April rally stopped at the underside of the rising 200-day moving average line and declined so far to retest the declining 50-day moving average line. The $60-$59 area could provide some chart support and the trading volume looks like it has dried up in April. The On-Balance-Volume (OBV) line moved up from late March and shows only a limited decline in recent days. The Moving Average Convergence Divergence (MACD) oscillator has narrowed towards a bearish crossover and a take-profits sell signal.
In this updated weekly chart of CVS, below, we see a chart that has bullish potential. Prices are below the rising 40-week moving average line. The weekly OBV line is working on a turn around from its March low. The MACD oscillator is narrowing towards a potential cover-shorts buy signal.
In this daily Point and Figure chart of CVS, below, we can see that the software is projecting a possible downside price target of $54 however there looks like strong support at current levels and below.
Bottom line strategy: I think the charts of CVS are in pretty good shape, and I look for renewed strength in the days and weeks ahead. Some traders seem to be more influenced by the broad market sell off in recent days.
(CVS is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells this stock? Learn more now.)
