CVS Caremark Corp. declined from the high of $44.29 (U.S.) to $23.19 in 2008 (A- B) and then traded below about $39 for three years (dashed line). In December, 2011, the stock started an extremely sharp rise to signal a breakout and the start of a new major up-trend and reached a high of $46.22 (C). The price action (below $39) from 2009 to 2011 supports significantly higher targets. Although a pullback toward $40-$41 is quite likely, only a sustained decline below $39-$40 would be negative. Point & Figure measurements provide an initial target of $54.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. Ron Meisels is a contributor to the www.NA-marketletter.com website. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.com
Infographic: Bullish on CVS CaremarkReport Typo/Error
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