Range-bound market sets stage for these 3 stocks to continue their downtrends

Published: January 25 2023, 21:30 GMT+0

Range-bound market sets stage for these 3 stocks to continue their downtrends

The main stocks that are plunging: CVS Health, GoHealth, Inc., ProShares UltraShort FTSE Europe

Markets did not have a clear cut direction — Nasdaq slipped 0.18% and closed at 11,300. S&P 500 closed 4,016.22 after a stable day.

Current market events are being influenced by ambiguous macro data as Crude Oil Inventories in United States fell short of market expectations (971,000) with a reading of 533,000, continuing the decline from the previous figure of 8.41 million.

What is a downtrend?

The perceived tendency of a price to move in a downward direction over time. A downtrend describes the price movement of a continously depreciative financial asset over a particular time frame. In a downtrend, each successive low and peak is lower than the ones found earlier in the trend. The downtrend is therefore composed of lower swing lows and lower swing highs.

| CVS Health | 17.38% ($17.77) depreciation over 29 days (61.2759 cents per day average)

After setting a $84.82 – $86 range, CVS Health closed the day 0.31% lower at $85.75. After closing the previous day at $86, the healthcare giant dropped to $84.82, hitting its lowest point in 1 year. It later recovered 93 cents and is now trading at $85.75. The healthcare company has recovered almost all of its session losses after dipping down to $84.82 today. Daily trading volume (17 million shares) increased, making up 195% of the 21-day average (8.73 million). Just recently, CVS Health's board disclosed a quarterly dividend of 60.5 cents per share to be paid on Wednesday, February 1st for all shareholders of record up until Friday, January 20th. Based on current prices, the company's decision thereby provides CVS Health investors with an annual dividend yield of 2.82%.

| GoHealth | continues a 6 day decline; draws back 0.59% today

After setting a $12.75 – $13.62 range, GoHealth closed the day 0.59% lower at $13.42. The Medicare plan marketplace has recovered almost all of its session losses after dipping down to $12.75 today. Today's trading volume was 39,653 shares which is slightly below the 21-day average of 58,529.

| ProShares UltraShort FTSE Europe | 17% ($2.08) depreciation over 16 days (13 cents per day average)

After setting a $10.59 – $10.85 range, ProShares UltraShort FTSE Europe closed the day 0.84% lower at $10.6. ProShares UltraShort FTSE Europe has recovered almost all of its session losses after dipping down to $10.59 today. Today's trading volume was 298,032 shares which is lower than the 21-day average of 465,624.

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