There’s an old belief on Wall Street that markets have memories. Shares of CVS Health Corporation CVS show that it’s true.
This means that the resistance or support at an important price level can stay intact for long periods of time. It could be months, or as we see here with CVS, years.
Resistance is a large group of sellers who are looking to sell at or around the same price. In this case, it’s $110.
Stocks often make large reversals if they can’t break through or trade above the important level. It happened with CVS back in 2015 and it may be happening again.
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