CAH closes above its opening price after recovering from early selling pressure
Cardinal Health Inc. (CAH) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
CAH finished the week 2.37% higher at 59.62 after gaining $0.22 (0.37%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $1.58 lower after the open, Cardinal Health managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CAH as at Feb 14, 2020):
Friday's trading range has been $2.18 (3.68%), that's far above the last trading month's daily average range of $1.47. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CAH.
Two candlestick patterns are matching today's price action, the Hanging Man and the Last Engulfing Top Pattern which are both known as bearish patterns. The last time a Last Engulfing Top Pattern showed up on September 16, 2019, CAH lost -1.33% on the following trading day.
Prices are trading close to the key technical resistance level at 60.48 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 60.69 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Cardinal Health. Out of 807 times, CAH closed higher 53.04% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after two trading days, showing a win rate of 54.89% with an average market move of 0.04%.