CVS Health ( CVS) shares jumped more than 4% higher in trading Monday after a sell side firm published a very positive note on the pharmacy and health services provider. Let's check out the charts to see if this price strength in CVS can continue.
In this daily bar chart of CVS, below, I can see that prices have been in a downward path the past 12 months. CVS trades below the declining 50-day moving average line, but that line could be tested in the days ahead. CVS also trades below the bearish 200-day moving average line.
The On-Balance-Volume (OBV) line has been struggling since December and suggests that sellers of CVS are more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but turning upward for a cover shorts buy signal. 
In this weekly Japanese candlestick chart of CVS, below, I see a mixed picture. The major trend for CVS is still down as prices trade below the negatively sloped 40-week moving average line. Prices made a slightly lower low in July but the indicators diverged -- the weekly OBV line did not make a lower low and neither did the MACD oscillator. Divergences are not clear buy/sell signals but they are a heads up that a change could be underway.
In this daily Point and Figure chart of CVS, below, I can see an upside price target in the $75 area.
In this weekly Point and Figure of CVS, below, I can see the software is projecting a potential downside price target in the $53 area.
Bottom line strategy: CVS is likely to see some upside follow through from Monday's rally but the charts and indicators do not yet suggest that a sustained advance could get going. Traders should be able to find better opportunities elsewhere.
