CVS Stock Price fell 7%; Will CVS stock hit fresh 52 week low

• CVS Stock Price (NYSE: CVS) fell 7% overnight and down by 28% on YTD basis.
• The CVS stock faced rejection from the 50 day EMA.
• CVS Health Corp stock below trading 50 and 200 day EMA shows downtrend.

CVS Stock Price (NYSE: CVS) fell 7% in a single day and faced rejection from the 50 day EMA. It shows that the recent rally in the CVS stock is a trap for the bulls and sellers are active on higher levels. 

CVS Stock Price is in a correction mode and continues to decline by forming lower low swings. Short term pullbacks are not sustaining on higher levels indicating the sellers dominance. 

The buyers seem to have lost the confidence and genuine investors looking for an exit. The recent downfall has a strong momentum and selling volume is also high indicates fear and more sell off is possible. 

CVS Stock price trading below the 50 and 200 day EMA shows the positional trend is in the downward direction. The 50 day EMA is acting as an immediate hurdle for the bulls. Therefore, till price below EMA, the possibility of trend reversal remains low. 

CVS Stock price closed the previous session at $66.65 with an intraday decline of -7.76%. It erodes the big portion of the market capitalization and drags the market cap down to $85.45 Billion.

Will CVS Stock Price decline further

CVS Stock price is continuously declining from the beginning of 2023 and down by 28% on YTD basis. The healthcare sector is underperforming and the majority of the stocks have given negative returns. It disappointed the expectation of the long term investors. 

However, CVS health is a profitable company and beats the analyst estimates on every quarter is a positive factor. If the overall healthcare recovers then CVS stock is also expected to perform. 

Presently, the stock is in downtrend and if it drops below $65.00 then bears will try to drag it down to $55.00. However, if price defends the $65.00 support then it is expected to consolidate in the range between $65.00 to $78.00. 

The technical analysis suggests, more downfall is possible in CVS stock but it is expected respect the $55.00 support.

CVS Stock price near the demand zone

CVS Stock Price formed a bearish engulfing candle on a weekly time frame. The stock is forming a bearish pattern on a multiple time frame. It has corrected a lot from the highs but no sign of recovery is visible. 

CVS stock is likely to enter into the demand zone $55.00 to $65.00 and lower range will act as strong support. Recently, the MACD curve displayed a positive crossover but it lacked momentum. Presently, the curve is reversing down indicating bearishness. 

The RSI showed a steep fall from the overbought zone. Currently, the RSI at 35 and might test oversold territory. 

Conclusion

CVS Stock Price (NYSE: CVS) fell 7% in a single day and closed the session near to the 52 week low. CVS Stock and the whole healthcare sector is in downtrend. Therefore, correction in stock might continue. The technical analysis suggests, the downfall in the CVS stock might take halt in the range between $65.00 to $55.00.

Technical levels

Resistance levels: $78.00 and $84.00

Support levels: $60.00 and $55.00

Disclaimer

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