CVS Following Our Technical Prescription
by Mike Paulenoff
November 7, 2021 • 4:55 PM EST
Early on October 15, when CVS Health Corporation (CVS) was trading at 85.92, Mike Paulenoff highlighted upside opportunity for MPTrader members, writing:
"For the past 5 months, CVS has gone pretty much nowhere after hitting a new 6 year high at 90.61 on 5/25/21. It is precisely because CVS has traversed a sideways price path since late May that makes my work interpret the CVS technical setup as extremely promising for a run above 90.61 towards 100, and possibly 108-110 in the upcoming weeks and months."
Mike again wrote positively about the stock on October 20, when it was trading at 86.45, commenting:
"If my intermediate-term technical work is telling us anything about CVS, it is saying, 'watch me rocket above 90 towards a 100+ target!' Only a failure to hurdle 87 followed by a decline beneath 82 will compromise the developing anticipated thrust to the upside."
CVS began climbing on October 26, taking out key resistance at its prior failed rally peak at 87.80, The stock continued to strengthen right into last week's earnings report on November 3, when the company beat the Street's estimates on earnings, revenues, and guidance, propelling the stock to 96.57, its highest price in over five years.
At that high, CVS was 12.4% above its price at Mike's initial alert.
What's next for CVS? The strength of the consumer and another round of Covid-19 (booster) shots tie into the strength of CVS, which according to Mike's technical setup work has unfinished business on the upside as it heads towards 100-102 next. But will there be a period of rest-digestion first?
Join Mike and our MPTrader members for ongoing intraday discussions about CVS, as well as many other stocks, macro indices, ETFs, cryptocurrencies, and commodities.
On May 22, we introduced a budding bullish technical setup in RIG (TransOcean Ltd) to MPTrader members, noting:"RIG (TransOcean) is up 7% today, a thrust that immensely improves the technical position of the stock. RIG exhibits an extremely powerful near and intermediate-term setup that points to a next upside target zone of 6.80 to 7.10, but when overlaid on my attached Daily Chart, projects to 8.50... last is 6.36.
Well before the Artificial Intelligence (AI) hysteria was unleashed this past Thursday by the shockingly powerful earnings report from Nvidia (NVDA) that reset expectations for the growth and revenue potential of AI, our technical pattern analysis of MRVL provided an early heads-up for MPTrader members.
Just after the start of the New Year, on January 9, Mike Paulenoff posted the following missive to MPTrader members about EWJ (Japanese Country Fund ETF):In my reading and research this weekend, my eyebrows did a bit of a backward roll when I saw the budding technical setup in EWJ.
On April 21, AAPL climbed to a new 8-month recovery high of 168.16, representing a 35% gain from the January 2023 low. We alerted MPTrader members to the new high in AAPL, but attached a yellow caution flag to the update:"AAPL continues to intrigue me technically because the stock hit a new multi-month recovery high at 168.16 on Wednesday -- 35% above its Jan 3rd low, but stalled right at its 15-month resistance line that cuts across the price axis in the vicinity of 168.
On March 20, I posted the following technical alert to MPTrader members:"FCX (Freeport-McMoRan)-- Technically, let's notice that FCX appears to be in the U-Turn phase after the completion of a 7-week 25% corrective period that successfully tested the 200 DMA last week. If the commodity complex has fully corrected its post-pandemic-inflationary spiral bull phase (think Crude Oil, down 46% from its 2022 highs), then FCX with its concentration of Copper, Gold, Silver, and Oil is poised for a resurgence of strength...
