CVS Trading in Bullish Pattern

03/21/2011 9:51 am EST

Focus: STOCKS

The retailer is trading near the low end of a well-defined range, and Fibonacci levels point to the likelihood of a sizable short-term move higher. 

By Suri Dudella

CVS Caremark Corporation (CVS) has been bouncing around the bottom area of pitchfork lines drawn from a recent swing high and swing low of last year.

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It is also trading in an "ABC" bullish pattern. Fibonacci levels point toward a short-term move toward the $36-$38 area.

CVS also made it into the news last week when fears of nuclear radiation reaching the USA caused a run on potassium iodide. While CVS does not sell the product in its retail stores, it does sell an over-the-counter variety of the drug on its Web site. However, it said late last week it had sold out of the tablets.

By Suri Dudella of SuriNotes.com

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