CVS Health (CVS) is down sharply Friday — about 10% — in response to reports that it’s in talks to acquire primary care chain Cano Health (CANO) and a Medicare Advantage plan downgrade. Let’s jump to the charts to see what they can tell us.
In the daily bar chart of CVS, below, we can see that the shares have gapped lower this Friday. Prices are trading below the cresting 50-day and 200-day moving average lines but more importantly prices have broken their June nadir.
The daily On-Balance-Volume (OBV) line turned lower in early August giving you a “heads up” that sellers were being more aggressive ahead of this current sharp decline. The Moving Average Convergence Divergence (MACD) oscillator turned bearish in late September.