The security could bounce off the 80-day trendline
Specifically, CVS is within one standard deviation of its 80-day trendline. Per data from Schaeffer’s Senior Quantitative Analyst Rocky White, the security saw no fewer than five similar signals in the last three years, defined for this study as having traded north of this moving average 80% of the time during the last two months, and in eight of the past 10 trading days.
CVS was higher one month later in 80% of those instances, with an average 3.9% gain. A move of similar magnitude from its current perch would place the security back above $76.
Over at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security’s 10-day call/put volume ratio sits in the 80th percentile of its annual range. This means an unwinding of pessimism could boost CVS.
Image and article originally from www.schaeffersresearch.com. Read the original article here.