Here's Why Cardinal Health May Need a Doctor's Note Before Rallying Again
After checking the charts and indicators, CAH investors should take note.
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Cardinal Health CAH is a distributor of pharmaceuticals, a manufacturer and distributor of medical and laboratory products, and a provider of performance and data solutions for healthcare facilities.
Let's check our medical coverage and the charts and indicators of CAH.
In the daily bar chart of CAH, below, I can see that the shares have been testing the $95 area. Prices are trading below the declining 50-day moving average line and below the cresting 200-day moving average line.
Trading volume has been active the past year while the On-Balance-Volume (OBV) line has been stalled since March. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but could generate a cover shorts buy signal in the days ahead.
In the weekly Japanese candlestick chart of CAH, below, I can see that the shares made a longer-term rally but they have broken this uptrend. CAH now trades below the cresting 40-week moving average line.
The weekly OBV line has made no positive progress in the past 12 months. The MACD oscillator is in a bearish alignment below the zero line. The candles are not showing us lower shadows to tell us that traders are rejecting the lows yet.
In this daily Point and Figure chart of CAH, below, I can see that the software is projecting a downside price target in the $73 area.
In this weekly Point and Figure chart of CAH, below, I can see the same $73 downside price target as the daily chart above.
Bottom-line strategy: Overall the charts and indicators of CAH are bearish. We might see prices pulled higher in the current broader market froth but investors should avoid the long side of CAH.
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