Chart of the Day for Week of January 26 - CVS

Highly precise price action technical analysis offers the strongest trading edges and the most opportunities across the markets, making it the foundation of our reviews.

Healthcare-related stocks took a notable hit this week following the announcement of reduced Medicare reimbursement rates for the upcoming year, and CVS Health (CVS) was no exception. The policy-driven pressure added fresh volatility to a stock that has already been working through a multi-year corrective phase.

From a technical perspective, CVS is now sitting at an important inflection zone where long-term structure, trend lines, and Fibonacci levels converge. This is exactly the type of environment where traders want clarity, not prediction.

Since May 2023, ChartPros has published 700+ Chart of the Day posts designed to help traders learn how to read price with clarity and confidence. As markets evolve, so should the way we study them.

Starting in January 2026, Chart of the Day transitioned to a weekly format. Each featured chart now includes deeper analysis, clearer structure, and more strategic context.

Fewer charts. More focus.

Consistent profitable investing and trading requires a structured, rules-based approach to price action analysis. Proven processes, disciplined risk-reward management, and a performance oriented execution environment create the foundation for long-term success.

When combined with powerful mental performance strategies, this method becomes the ultimate blueprint for thriving in any market, on any time frame.

As requested, this analysis takes a pure price action technical analysis approach to assess key levels and potential next price moves.

The 5-Step Charting Process in the NeuroTrading Method®

The 5-Step Charting Process in the NeuroTrading Method® is a structured approach to reading price action with clarity and confidence. This process is designed to eliminate guesswork, reduce noise, and support disciplined execution.

1. Identify Support and Resistance (S/R)
Key levels are marked on the Monthly and Weekly charts, working left to right to establish long-term market structure.

2. Assess Trend Structure
Trend direction is evaluated across timeframes to determine whether price is trending, transitioning, or consolidating.

3. Apply Fibonacci Anchoring
Only Fibonacci levels visible on the chart are used, with anchors placed precisely to highlight reaction zones and extensions.

4. Map Change Control Zones and Supply/Demand
Areas where control shifts between buyers and sellers are identified to define decision points.

5. Develop the Trade Plan
Directional bias, levels of interest, risk parameters, and execution criteria are defined before any trade decision is considered.

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Monthly Chart Insights and Analysis 

The monthly chart provides the big-picture context. CVS peaked at $113.65, marking the top of a multi-year advance before entering a prolonged decline that erased a significant portion of that move.

The key takeaway on this timeframe is simple: only one trend line matters.

That rising long-term support line, stretching back several years, has now been tested and respected. Price recently tagged this trend line in the mid-$50s before bouncing sharply, signaling that long-term participants were willing to step in at that level.

As long as CVS holds above this rising structural support, the broader pattern shifts from breakdown risk to base-building behavior. Failure to hold it would open the door to a deeper structural reset, but for now, buyers have defended the line that matters most.

With plenty of volatility traders have had much to be happy with but long term buy and hold investors have been on a roller coaster ride lately.

This kind of movement highlights why a cautious and well-informed approach is essential when evaluating a stock’s short to mid term outlook.

Weekly Chart Insights and Analysis 

The weekly chart shows where all the actionable price decisions are unfolding.

After the selloff accelerated into late 2024, CVS formed a clear downside exhaustion move that terminated right on rising support. From there, price staged a sharp rebound, reclaiming multiple Fibonacci retracement levels in quick succession.

Key levels traders are watching on the weekly chart:

• $68 to $70: A critical reclaimed zone where prior resistance flipped into support.

• $71.83: The 50% retracement of the most recent downswing.

• $85.39: Major overhead resistance and the level that must be reclaimed to shift the intermediate trend back in favor of buyers.

Right now, CVS sits in the middle of this range. That tells us something important. The easy part of the bounce is already behind us. From here, continuation higher requires follow-through and acceptance above resistance, not hope.

As always, patience matters more than prediction.

It goes without saying though, the only guarantee in the markets is that price cycles.  It cycles up and it cycles down across all time frames and all charts and rarely, if ever, moves in a straight line.

Only time will tell for sure what price will do next...

We’ve combined Fibonacci levels with key support/resistance zones and trend analysis to pinpoint potential price levels of interest and future targets.

With precision-focused charts like these, both traders and investors can confidently build and execute their strategies.

What Traders Should Be Watching

This is no longer about catching a falling knife or chasing a bounce.

This is about execution around defined levels.

If CVS can hold above the reclaimed mid-$60s zone and build acceptance, the path toward the mid-$80s opens up. If price stalls and rolls back below support, this bounce becomes just another countertrend rally within a larger corrective structure.

The chart is doing its job. The levels are clear. Now it comes down to discipline and execution.

Key Takeaway

This weekly Chart of the Day format reflects how successful traders actually operate in a Performance Execution Environment. They do not need more charts. They need better structure, better preparation, and clearer decision frameworks.

Chart of the Day is not going away.
It is leveling up.

So what's next? 

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A ChartPros Briefing on why strategy isn’t the problem and how the right trading environment changes performance. 

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