Back in early February, with CVS Health Corporation (CVS) trading at 73.19, Mike Paulenoff alerted MPTrader members to a bullish technical setup in the stock, writing:
"CVS exhibits a potentially very powerful multi-month set up, and as a matter of fact, looks like it just ended a correction from 77.23 (1/12) to 71.04 (1/29, and right at its up-sloping 50 DMA)."
He added, "If reasonably accurate, this means that CVS is entering a new upleg that should challenge and take out 77.23 en route to a new ATH-zone projected into the 80-83 area."
Fast forward to this past week, in which the stock took out a 14-month resistance zone at 77.00/40 on Monday, and closed Friday at 85.11, a full 16% above its price at our initial alert.
What's next for CVS? As long as any forthcoming weakness is contained above 81.50, CVS remains poised for upside continuation into our next optimal target zone at 88-90.
Mike Paulenoff is co-founder of MPTrader.com, a live trading room featuring his analysis on the key key market indices and bellwether stocks & ETFs.