CVS Caremark Expecting Resistance Soon?

Published on Friday, 03 September 2010 04:24 Written by Christian Paolinetti

New York, September 3rd (TradersHuddle.com) - Shares of CVS Caremark Corporation (NYSE:CVS) closed the trading session at $28.31 near its 50 day moving average currently set at $29.54. CVS' price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

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.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $26.84 and calculated resistance at $32.09. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by CVS Caremark shares.

Traders should evaluate their trade if they want to establish a position on CVS Caremark given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.