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CVS Health Corp. (Friday’s close US$100.36) built an extremely bullish base in the form of a triple bottom pattern (dashed lines). The stock encountered heavy resistance near US$77 for more than two years (dotted line), but pierced above this level and reached a high of US$90.60 clearly establishing a breakout and the start of a major uptrend (A).

At that level, the stock became overbought and was far above its 40-week Moving Average (40wMA); it pulled back toward its Average near US$79-$80 where it found good support (B) and then resumed the uptrend (C). Only a sustained decline below US$87-$88 would be negative.

Point & Figure measurements provide targets of US$110 and US$120. The large triple bottom formation (dashed lines) supports significantly higher targets.

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Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.

Chart source: www.decisionplus.com

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 07/11/24 1:51pm EST.

SymbolName% changeLast
CVS-N
CVS Corp
-6.02%57.9

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