CVS rise likely fails in medium term; expect drop to ~90.16 after peak near 101.

Let's move on to CVS, this is the last one. I think this is an interesting graph that deserves close attention. CVS has an expected decline from 10.5 to 12.7. This is tape 32. It's been obvious for years. A really good graph.

Remember, towards the end of the cycle, what usually happens is that you see some selling, right? You can see that here. Oops, we're entering a box here. here. Here, isn't it? Look at the late highs.

Do you see that? I don't know . I just want to highlight this. This is important. Look at the delayed rise. Look at the angle of the Relative Strength Index (RS). Here below. Here below.

It's completely flat here. I wasn't going to do anything there, but I saw a final downward movement. The later elevations are extremely interesting. A slight rise there with the RS indicator remaining stable at the bottom.

This is a truly classic move. The elevation is here, with RS remaining stable at the bottom. Look what happened. A test of the bottoms, then he was beaten. Here, there was a slight upward swing in the RS indicator, so it's not an ideal setup.

But when you see the RS indicator firmly down with a bounce, as it did again, I think that sets the stage for something similar to what happened here.

I'm not saying it should fall by the same amount because the overall cycle is now more positive than it was here, is it? It is clear that the situation was much more bearish in the past compared to now, but the RS index is low.

You get a jump. The higher probability, and the reason we say this is the current angle of the RS indicator and the consistency of the cycles with the bottoms that formed near their ideal dates, right?

These two factors lead me to believe that this rise has a greater likelihood of failing in the medium term, do n't you agree?

Around 99.28 to 101. I don't really expect it to go above 101 at the moment . It must remain below this level and then give a final drop towards 90.16. Somewhere around that , right?

One final drop, right ? From 10.5 to about 12.7.

In the short term, it's really interesting, isn't it? Watch that low price gap resulting from the profits. This is that drop. Was there any actual sale underneath it? no. Look at the size of objects below these key levels.

Very small. Very small with no follow-up. Just imagine what happens in relation to this general feeling. Make them fewer. Make them fewer. Make them fewer. Sell ​​short at every rise.

Sell ​​short at every rise . Sell ​​short at every rise. Do traders get paid to do this? No , it's not like that. And what is the end result? A little pressure, isn't it?

So, look at that sharp drop. That 's what caused it, is n't it? They were all wrong. They were all arrested. A slightly higher trading volume than we were seeing, wasn't it? While we were witnessing the transformation. So, this is also interesting.

So, as we said before, approximately 9943 to 10150 is the area where I expect it to fail. This is the peak that formed the day after the earnings announcement day. So, look for its failures and start to backtrack.

Currently, the Relative Strength Index is positive, and the "Safe" bars are neutral. So, you are in a slight upward trend.

I will wait until the setup for short selling is in place again. He hasn't done that yet. So, I want to see this rise a little, then stop and start to curve. If you see it starting to sag, stop loss of structure as usual.

Structural stop-loss orders are the foundation. Always keep your stop loss in an area that the price should not exceed. The reason I like level 50 is that it is also located at the old pivot point .

So, this seems very logical to me. I really want to target the gap that's below that . So, I want to try to time my entry as best as possible, once that peak is formed and it starts to pull back against the 10150 area, okay?

I hope this is a more detailed look at CVS stock. The next daily low on this 34-candle chart is due around 10:02.