Are the Bears Taking Control over CVS Caremark?

Published on Wednesday, 08 February 2012 04:43 Written by TradersHuddle Wire

New York, February 8th (TradersHuddle.com) - Shares of CVS Caremark Corporation (NYSE:CVS) ended the trading session lower by $0.19 or -0.44% from its previous close. CVS' price action formed what is considered to be a bearish engulfing candlestick chart pattern.

CVS Caremark Corporation (NYSE:CVS) is a pharmacy services company that operates a chain of drugstores located throughout the United States. The stores offer a wide range of branded and generic drugs, as well as household goods. The Pharmacy Service segment provides a range of prescription benefit management services, including mail order pharmacy services, specialty pharmacy services, plan design and administration, formulary management, and claims processing.

CVS' current stock range is defined by calculated support defined at $36.44 and by the resistance level at $43.98, which should be used by traders planning their trades.

Traders wanting to establish a position in CVS Caremark stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current CVS Caremark shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: