CVS Health Corporation

In today’s Super Seasonals: Trade of the Week we will look at CVS Health Corp. (CVS).

CVS Health Corp. is a health solutions company, which engages in the provision of healthcare services. It operates through the following segments: Pharmacy Services, Retail or Long-Term Care, Health Care Benefits, and Corporate and Other.

Below is a seasonal snippet of the seasonal stats for CVS going back to 1984…the $84-$88 price levels appear at first glance to be upside potential target resistance areas…

Zooming in on a Daily chart below, there’s short term overhead resistance around $82.
To buy shares of the stock, I’d need to see it sell off a bit to make the risk reward metrics more to my taste. If it pulls back to the $76 area that might be an attractive area to buy shares, if I believed this it might hold above the previous week low of $73.04.

From a top down approach, the Weekly chart says the stock is trading below its Mean, which is at $83.46.

Zooming in to a Daily chart, the stock is overbought, it might try to pull back to a Mean support area $74.22.

So my thesis, technically, is that in the short term the stock is overbought, and I’d like it to pull back a bit. From a longer perspective it’s got room to move to the upside by Q1 of next year.

If a reader is really bullish now, here’s a potential Call to consider buying…

If a reader is relatively bullish now, here’s a potential Call Debit spread to consider…