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CVS Health (CVS-N, Monday’s close US$97.08) declined from US$111.25 in February, 2022, to about US$65 in 2023 (A–B), then transitioned into a multi-year base-building phase lasting roughly three years. During this period, the stock formed a bullish Inverse Head-and-Shoulders pattern (solid lines).
The recent move above the neckline at US$83–84 (shaded area) marks a breakout from this base and signals the start of a new uptrend (C).
Behaviour indicators including the rising 40-week Moving Average (40wMA) confirm the bullish status. There is solid support near US$80-81; only a sustained decline below this level would cancel the current upside potential.
Point & Figure measurements provide initial targets of US$98 and US$108.The large Inverse Head-and-Shoulders pattern (solid lines) supports higher targets.
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart, courtesy of www.LSEG.com