CAH runs into sellers again around 60.39
Cardinal Health Inc. (CAH) Technical Analysis Report for Feb 21, 2020 | by Techniquant Editorial Team
CAH ended the week 0.17% higher at 59.72 after losing $0.70 (-1.16%) today, slightly underperforming the S&P 500 (-1.05%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CAH as at Feb 21, 2020):
Friday's trading range has been $0.89 (1.48%), that's below the last trading month's daily average range of $1.51. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CAH.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving higher in the previous session, the market closed lower but above the prior day's open today, forming a bearish Harami Candle. The last time this candlestick pattern showed up on January 23rd, CAH lost -1.91% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 58.66 (S1). Prices are trading close to the key technical resistance level at 60.48 (R1). After having been unable to move above 60.53 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 60.39.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 60.53 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 58.66 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Cardinal Health. Out of 513 times, CAH closed higher 53.80% 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 10 trading days, showing a win rate of 59.65% with an average market move of 0.82%.