One company at the intersection of technology, health and retail is CVS Health (CVS) , which is why Jim Cramer spoke with Larry Merlo, CEO of CVS on "Mad Money," for an update on the company's outlook.
Merlo said the pandemic has validated the company's omnichannel strategy, as it has been added Covid-19 testing to its offerings of retail, pharmacy, HealthHubs, and digital products.
Merlo noted that CVS has administered 100,000 tests and is planning to bring "swab-and-send" testing to 1,000 locations.
In this updated daily bar chart of CVS, below, we can see that prices remain between the bottoming 50-day moving average line below and under the rising 200-day moving average line -- kind of a no-man's land with the moving averages. The daily On-Balance-Volume (OBV) line shows some weakness from late April into early May, suggesting some slight pickup in aggressive selling. The Moving Average Convergence Divergence (MACD) oscillator is just above the zero line in positive territory, but poised for either a turn higher or lower depending on the price action ahead.
In this weekly bar chart of CVS, below, we can see a defensive-looking picture. Prices are below the rising 40-week moving average line. The weekly OBV line is still in a downtrend from November, but may be turning around. The weekly MACD oscillator is below the zero line but narrowing slowly towards a cover-shorts buy signal.
In this daily Point and Figure chart of CVS, below, we can see a potential downside price target of $54 but we can also see that a trade at $65.43 will refresh the uptrend.
Bottom line strategy: The overall pattern for CVS is still constructive even though the Point and Figure chart suggests a downside price target. Strength above $65 will re-establish the bull case.