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Is CVS Health Stock Finally a Value Buy?

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Things aren’t going so well for your old-school drug stores. The emergence of online giants in the space, with their convenient delivery options, are squeezing them out. If you thought CVS Health (CVS - Free Report) versus Walgreens was the real battle, you’d be stuck in Y2K. The CVS story has gone a bit better than the Walgreens one.

At least there is a bounce off the lows here for CVS. The stock has pushed through the 50-day, although the 200-day still remains a couple bucks overhead. The rumor mill helped things along on Monday. The company is reportedly working with financial advisors to explore options for the company, including a potential breakup. This news comes a little over a week after the FTC announced it was suing CVS, Cigna and United Health for allegedly unfairly excluding lower cost insulin products from lists of drugs covered by insurers.

Moving Averages: Bartosiak starts by examining the stock's moving averages, such as the 50-day and 200-day moving averages. He points out the significance of crossovers and divergences between these averages, which can indicate potential trend changes.

Support and Resistance Levels: Bartosiak identifies key support and resistance levels on the chart. These levels act as barriers that the stock price must breach or hold above, providing traders with critical decision points.

Chart Patterns: He discusses chart patterns like head and shoulders, cup and handle, or flags, and their relevance in predicting future price movements. These patterns can offer valuable insights into potential bullish or bearish trends.

Volume Analysis: He emphasizes the importance of volume analysis in confirming price trends. An increase in trading volume during a breakout or breakdown can validate the significance of a price move.

Dave Bartosiak's technical analysis approach adds depth to our understanding CVS Health’s stock chart. By paying attention to moving averages, support and resistance levels, chart patterns, technical indicators, and volume, he equips investors with a comprehensive toolkit for making well-informed decisions in the stock market. Remember, while technical analysis is a valuable tool, it's important to consider other factors like fundamental analysis and market sentiment before making investment choices.


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