Yesterday, health insurance stocks fell on lower-than-expected final Medicare Advantage (MA) payment rates. This news weighed heavily on shares of CVS Health Corp (NISE:CVS), which fell 7.2% — its biggest daily percentage loss since August. Despite a modest recovery today, with shares up 0.7% at $74.37, the recent pullback has left CVS close to its 200-day moving average, a trendline that has historically been bullish.

For those considering buying the dip, Schaefer senior quantitative analyst Rocky White notes that CVS was previously within one standard deviation of its 200-day moving average, resulting in a 3% gain on average a month later. Additionally, the stock’s 14-day Relative Strength Index (RSI) of 29.4 suggests that it is oversold and could see a near-term bounce. Prior to yesterday’s decline, CVS had been on an uptrend, with just three daily losses since March 14, although the stock as a whole is down 5.7% year-to-date.

By Samantha Johnson

As a dedicated content writer at newspuk.com, I immerse myself in the art of storytelling through words. With a keen eye for detail and a passion for crafting engaging narratives, I strive to captivate our audience with each piece I create. Whether I'm covering breaking news, delving into feature articles, or exploring thought-provoking editorials, my goal remains constant: to inform, entertain, and inspire through the power of writing. Join me on this journalistic journey as we navigate through the ever-evolving media landscape together.

Leave a Reply