CVS stock price took support near the 52-week low and formed a giant bullish candle. The buying volume also increased and the price followed the upward direction.
The recent up move is majorly due to positive quarterly earnings. So, it’s important to check whether the price will give the follow-up in the coming session or not.
CVS Health stock price is trying to regain the 50-day-EMA. If buyers succeed, then one may see a short-term bullish trend reversal.
Previously, in mid-September and October, CVS stock price tried to break the $73.00 hurdle. However, both attempts failed and the price reverted down.
Recently, on November 1, 2023, CVS Health Corp. released the previous quarter earnings. It reported an EPS of 2.21% and revenue of $89.764 Billion. The company beat the EPS as well as revenue estimates by 3.67% and 1.67% respectively.
Investors reacted positively and the stock price showed a minor bounce. CVS Health stock price closed the previous session at $68.73 with a decline of 0.41%. The market capitalization of the company stands at $88.28 Billion.
Does CVS Stock Price Look Oversold?
CVS stock price seems to be in a recovery mode. Buyers are active near $65.00 and trying their best to rebound.
On a daily time frame, CVS Health share price looks oversold so a pullback rally may continue to the $73.00 level. If the buyers succeed in breaking the $73.00 hurdle, then 5% to 8% more upside will open.
On the other hand, if the CVS stock price broke down the recent low at $64.41, then the bears may try to pull the price down to $60.00. The analysis suggests that CVS shares look cheap at current levels so investors may look for long-term investment and buy it.
Downside in CVS Health Stock Price Looks Limited
CVS Health stock price formed a bullish hammer candle on the weekly chart. It shows the presence of buyers at the lower levels so the downside risk looks limited.
The technical indicators like RSI reversed upward from the oversold territory. It denotes the confidence of bulls and buyers returning back on track.
The MACD curve sloping sideways indicates that the CVS stock price may consolidate for some time before resuming the rally.
Conclusion
CVS stock price bounced back by taking support near the 52-week low. The recent up move is fueled by quarterly earnings. So, it’s important to see whether the buyers can give the follow-up or not.
The analysis suggests CVS Health stock price looks oversold and cheap at current levels. Therefore, long-term investors may buy it to generate decent returns.
Technical Levels
- Resistance levels: $73.35 and $78.57
- Support levels: $64.58 and $60.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/11/02/cvs-stock-price-analysis-cvs-defend-52-week-low-what-next/