Covance (CVD) Stock Example, Support and Resistance

The following stock chart of Covance (CVD) offers a great example of simple support and resistance. Support and Resistance is a basic form of technical analysis used commonly every day to mark potential buy and sell points on a chart.

Note: this chart of Covance (CVD) is a nine month daily stock chart:

cvd stock chart

1. The three 1s show us how CVD stock found resistance at $88 three times before finally breaking through. Participating in the break would have yielded an actual return of 10% in only seven days.

2. The four 2s show distinctly how $80 was a key support level for CVD. The stock held up at this price area several times over the course of five months before it finally broke to the upside above $88 a share.

3. The purple 3 shows us where the next resistance area currently is for CVD. Only time will tell if the stock will need another five month base to claim higher highs.

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