CAH breaks back above 50-day moving average


Cardinal Health Inc. (CAH) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team

Highlights

CAH breaks back above 50-day moving average
CAH closes higher for the 2nd day in a row
CAH finds buyers again around 50.83
CAH pushes through Monday's high

Overview

Moving higher for the 2nd day in a row, CAH finished the month -4.57% lower at 52.19 after gaining $0.22 (0.42%) today, strongly underperforming the S&P 500 (1.54%). Closing above Monday's high at 51.97, the share confirmed its breakout through the prior session high after trading up to $0.60 above it intraday.

Daily Candlestick Chart (CAH as at Jun 30, 2020):

Daily technical analysis candlestick chart for Cardinal Health Inc. (CAH) as at Jun 30, 2020

Tuesday's trading range has been $1.74 (3.39%), that's slightly above the last trading month's daily average range of $1.70. 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 slightly lower than usual for CAH.

In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.

The market managed to close back above the 50-day moving average at 52.16 for the first time since June 23rd. When this moving average was crossed above the last time on May 15th, CAH gained 6.66% on the following trading day. After having been unable to move lower than 50.93 in the previous session, Cardinal Health found buyers again around the same price level today at 50.83.

The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.

Selling might accelerate should prices move below the close-by swing low at 50.43 where further sell stops could get activated.

Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for Cardinal Health. Out of 80 times, CAH closed higher 61.25% 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 62.50% with an average market move of 0.85%.


Market Conditions for CAH as at Jun 30, 2020

Loading Market Conditions for CAH (Cardinal Health Inc.)...
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