Why CVS Stock Could Be About To Make A Big Move Lower

CVS Health Corporation CVS shares have once again run into resistance at the $76.50 level and may be about to move lower.

Resistance is a large group of sellers trying to sell at the same price. At resistance levels, there is more supply than demand for the stock. Rallies end when they hit resistance. Many times, markets trend lower after they reach these levels.

Over the last 18 months, CVS shares have reached $76.50 four times. The first two times were in November 2019 and January 2020. The stock also reached this level in January and again last month.

On all four of these occasions, a steep selloff followed.

If history repeats itself, CVS may be about to head lower.

Photo by MuzikAnimal via Wikimedia.