CVS Chart – July 20, 2009

I charted CVS again today at 1:46 pm while it was trading at $33.15.  After getting it right last month when I said it was heading higher.  S&P upgraded it today, but the chart shows that it could be ready for a breather.  It’s up, but on low volume and found resistance at its mid-May peak.  That horizontal line comes in contact with the six month trend line of higher highs. 

I still like CVS longer term, but I’m waiting for a dip before I get in again.  I have a limit in to sell August 31 puts and am going to try to wait on that order to hit at least a few more days.  If CVS stays above $32.50 through Wednesday or Thursday I’ll have to up my strike to $32.50.  I’m not bold enough with this prediction to start selling naked calls on CVS yet, but don’t see the catalyst to get it higher from the $33 range yet.