Looking at CVS for a Christmas Gift

• Posted by Greg Harmon
• on December 11th, 2014

My mom likes to go to CVS ($CVS) to find gifts for all the holidays. Not like to fill the ‘I want a pony’ request for my kids. But to find some cute furry animal specifically themed to that particular holiday. Ladybugs holding a heart for Valentine’s Day, a black cat with a witch’s hat for Halloween, a turkey with a pilgrim hat for Thanksgiving.

Our house is full of them. Now that Christmas is approaching we will likely see a set of cuddly polar bears with a red elf hat. It is all great, and the kids love it but Mom, maybe you can get them a different kind of gift from CVS this year.

The chart for CVS ($CVS) stock has been in a good uptrend since this time in 2011. It took a pause, going through a consolidation through the first half of the fall until breaking higher in late October. But since early November another consolidation has set in. It has traded in a channel between 89.15 and 91.40 since Veterans day (by the way – no presents from then). It appears it may be ready to break that channel higher now. The 20 day SMA is rising and acting as support. The momentum indicator RSI is moving back up as it bounces above the mid line and the MACD is rounding out, for a reversal higher. A move above the channel would target a run to 100. Why not give the grandkids a possible 11% return this year?

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