Trading Idea - Key levels for CVS Caremark

Published on Friday, 27 August 2010 07:16 Written by Christopher Lynn

New York, August 27th (TradersHuddle.com) - Shares of CVS Caremark Corporation (NYSE:CVS) are trading very close to calculated support at $27.70 with current price action closing at just $27.76 places the stock price near levels where traders will start paying attention.

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 current calculated support defined at $27.70 and by the resistance level at $32.09, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to CVS' price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $32.09 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.