Starting a position in $CVS 💊
Going in VERY early on this one 👀
I mentioned $CVS in my post the other day, and right now the list of reasons to start a position in it are longer than a CVS receipt! The stock is really beaten down right now and a prime opportunity to swing this bad boy for some major upside. So let’s dig into it…
Now this is a very tasty looking chart but let’s highlight a few of the key points that make this chart so beautiful:
- RSI is under 30
- Price is well under it’s 200 SMA — a bread and butter trade
- The 5 EMA and 20 SMA are not that far apart as it’s been dropping
- MACD momentum moving up and nearing a flip
- Hit previous recent low of $85.17 (from Oct 13th)
Now as the subtitle of this posts states, this is a VERY early position. Usually I like to wait for 3–4 days of support but you can see that a bottom hasn’t quite formed yet, so I’ll be starting out small and drip adding to it as I go. But you’ll also notice that it hit the previous low back in Oct ’22 and it held today, so a bottom may be forming very soon. There’s always a chance it can go lower which, again, is why I’m starting with a small base and will continue to add to it and DCA as it sets up.
Aside from just reading the chart, you can see that outside analysts also agree that there’s plenty of upside to be had:
I posted about this setup yesterday on Twitter, which is why it’s important to follow SpockTradez on Twitter to get these posts even earlier:
Trade long and prosper!
🖖
Sign Up for a Medium Membership: https://spocktradez.medium.com/membership
