CVS been on a downtrend since hitting all time highs from earnings. It’s been hitting lower lower lows and lower highs. On the daily chart after it broke the support at 92.18 because of the mix with the fed tapering news and the downtrend of the stock I was waiting for this to gap down to 90.55 and then to 90.20. However with the stock market having some breathing room over the weekend I was patient on going short on it just yet. That being said Monday’s volatility Helped cvs break the downtrend line with a red candle going right down its old support on the trend line. This could be an area of confluence and a trade opportunity to short. Considering that the stock double topped after breaking the trend line we should
be seeing the continuation of that downtrend. The stock also failed to break the 4 level Fibonacci retracement courtesy of wysetrade so that should be extra conviction to go short on this. On top of that there is news that CVS didn’t regulate their opioids which just signifies red knives. I will be talking puts as soon as the stock market opens or wait to see if the stock could break that top fib level considering the Pre market trading. First pt is 90.90 then 90.50 then 90.20 I will be scaling out as it hits these levels.
be seeing the continuation of that downtrend. The stock also failed to break the 4 level Fibonacci retracement courtesy of wysetrade so that should be extra conviction to go short on this. On top of that there is news that CVS didn’t regulate their opioids which just signifies red knives. I will be talking puts as soon as the stock market opens or wait to see if the stock could break that top fib level considering the Pre market trading. First pt is 90.90 then 90.50 then 90.20 I will be scaling out as it hits these levels.