NEW YORK ( TheStreet) -- CVS  (CVS) - Get Report jumped nearly 4% Thursday on news of its Omnicare purchase. Volume was very heavy from the open and remained elevated until mid-day. The stock closed off its highs, but more upside appears likely in the near term.

Back in late February CVS began to show signs of exhaustion as it neared the $105 area. During the previous four months, the stock had maintained a powerful bullish channel while gaining over 35% from the Oct. 15 low. By mid-March, the run had lost all momentum and was overdue for a consolidation. CVS drifted lower through early May, giving back very little ground. 

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At the time of publication, Morrow had no positions in the stocks mentioned.