CVS Caremark (CVS) is having a good year in 2012. Shares of the $61 billion pharmacy stock have rallied more than 17% so far this year. And the pattern in shares points to higher ground yet to come.
CVS has been forming a shallow ascending triangle pattern since the middle of April, with resistance just above $46 and uptrending support below shares. In an ascending triangle, shares bounce in between two technical price levels (horizontal resistance and uptrending support), all the while getting squeezed closer and closer to a breakout above resistance. That breakout is the buy signal; for CVS, it happened on Friday, when shares shoved above that horizontal blue line.
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