CVS Health (CVS) was downgraded to "hold" from "buy" by sell-side financial institution Deutsche Bank on Tuesday. Let's check out the charts and indicators to see what's happening with the stock.
In our last review of CVS on Feb. 8 we wrote that "With our $108 price target reached, traders should nail down some profits ahead of the numbers Wednesday morning. Raise stops on any remaining long positions to $102. If prices continue to advance it is great but those two candlestick patterns (noted above) are one reason to play it cautious for now."
Let's look again.
In the daily bar chart of CVS, below, we can see that prices made a high in early February and pulled back to hit our sell stop at $102 before a minor recovery rally into the middle of March. Prices have stopped short of breaking the February highs and have begun to weaken.
The trading volume did not expand in March, which told us that traders were not enthusiastic about the rally. The On-Balance-Volume (OBV) line shows weakness from early February. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but has narrowed and could soon cross to the downside for a take profit sell signal.



