CVS Health Corp (CVS) reported their latest earnings figures Wednesday morning. Analysts and traders initially seemed disappointed as the stock was lower in early trading although it has now reversed. Let's check out the charts and indicators to see if the patient will need more attention.
In this daily bar chart of CVS, below, I can see that prices suffered a decline over the past twelve months. Prices trade below the declining 200-day moving average line but above the rising 50-day line. The trading volume has been heavy since January and suggests that traders and investors have been voting with their feet.
The On-Balance-Volume (OBV) line declined into late May telling me that sellers of CVS were more aggressive than buyers. The rise in the OBV line the past two months may have been more short covering than outright buying.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but it has been narrowing and could cross to a take profit sell signal as soon as today.