CAH closes within previous day's range after lackluster session
Cardinal Health Inc. (CAH) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
CAH finished Wednesday at 47.21 gaining $0.66 (1.42%) on high volume, notably outperforming the S&P 500 (-0.46%). 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 Sep 16, 2020):
Wednesday's trading range has been $1.00 (2.14%), that's below the last trading month's daily average range of $1.29. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower 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 lower in the previous session, Cardinal Health managed to close higher but below the prior day's open, forming a bullish Harami Candle.
Prices are trading close to the key technical support level at 46.53 (S1). After having been unable to move lower than 46.53 in the previous session, the share found buyers again around the same price level today at 46.70. The last time this happened on September 9th, CAH actually lost -2.02% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 49.58.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 46.53 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Cardinal Health. Out of 63 times, CAH closed higher 52.38% 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 63.49% with an average market move of 1.51%.