CVS with an Interesting Setup. LONG? SHORT? WHO KNOWS?
CVS chart showing a really interesting setup. We have 2 possible scenarios to take into consideration.
1. CVS continues to push higher and breaks out of this resistance. Break and close above $77.20 would be confirmation of the breakout. We saw it break over $77.20 today but failed to hold and sold off. If it can hold above and show strength we may see CVS make a run towards $80 and higher.
2. CVS fails to breakout over $77.20 and hold it for a 3rd time and falls back into the ascending triangle where puts / shorting would work. If market shows signs of weakness after such a crazy move higher we may see CVS reject once again and continue to trade inside of this pattern for some more time before breaking out higher.
Those are both possible scenarios I see that can happen. I personally think we see the market sell some tomorrow 4/22/2021 and we may see CVS come down. I am going to keep a close eye on this ticker and hopefully we can get a nice breakout in the future but it may need some more time.
PLEASE SHARE WITH ME YOUR THOUGHTS ON CVS AND WHAT IT IS GOING TO DO I WOULD LOVE TO HEAR WHAT YOU THINK.
THIS IS NOT A FINANCIAL RECOMMENDATION AND ALL OF THIS IS JUST TECHNICAL ANALYSIS AND MY OPINION ON WHAT I THINK THE STOCK WILL DO.
1. CVS continues to push higher and breaks out of this resistance. Break and close above $77.20 would be confirmation of the breakout. We saw it break over $77.20 today but failed to hold and sold off. If it can hold above and show strength we may see CVS make a run towards $80 and higher.
2. CVS fails to breakout over $77.20 and hold it for a 3rd time and falls back into the ascending triangle where puts / shorting would work. If market shows signs of weakness after such a crazy move higher we may see CVS reject once again and continue to trade inside of this pattern for some more time before breaking out higher.
Those are both possible scenarios I see that can happen. I personally think we see the market sell some tomorrow 4/22/2021 and we may see CVS come down. I am going to keep a close eye on this ticker and hopefully we can get a nice breakout in the future but it may need some more time.
PLEASE SHARE WITH ME YOUR THOUGHTS ON CVS AND WHAT IT IS GOING TO DO I WOULD LOVE TO HEAR WHAT YOU THINK.
THIS IS NOT A FINANCIAL RECOMMENDATION AND ALL OF THIS IS JUST TECHNICAL ANALYSIS AND MY OPINION ON WHAT I THINK THE STOCK WILL DO.
Comment:
CVS broke right through the resistance and continued its strong bullish momentum. Remember to scale out of the trade and take your profits. Move stop losses up and never let your green trade turn red on you. On to the next one.