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…
As you likely know, there are literally dozens of solid ways to approach trading CVS Health Corp. (CVS) with a bullish bias. The decision of how to best invest in the stock or trade the options is an individualized decision, unfortunately there is no one best way. Hopefully this information has proved worth your time. Please remember, do your homework, and fully understand the risk before trading anything.
To learn more about seasonal information on CVS Health Corp. (CVS) and other solid seasonal opportunities click here SuperSeasonals . For other seasonal opportunities, please click on the link below to access the Super Seasonals software:
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