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CARDINAL HEALTH INC is setting up nicely for a breakout.

By Mill Chart

Last update: May 26, 2023

A possible breakout setup was detected on CARDINAL HEALTH INC (NYSE:CAH) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:CAH.

CAH Daily chart on 2023-05-26

Technical Analysis Observations

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

Taking everything into account, CAH scores 10 out of 10 in our technical rating. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, CAH is showing a nice and steady performance.

  • Both the short term and long term trends are positive. This is a very positive sign.
  • Looking at the yearly performance, CAH did better than 94% of all other stocks. On top of that, CAH also shows a nice and consistent pattern of rising prices.
  • CAH is one of the better performing stocks in the Health Care Providers & Services industry, it outperforms 91% of 126 stocks in the same industry.
  • CAH is currently trading near its 52 week high, which is a good sign. The S&P500 Index is trading in the upper part of its 52 week range, but not near new highs, so CAH is leading the market.
  • CAH is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.

Why is NYSE:CAH a setup?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:CAH currently has a 8 as setup rating:

CAH has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 84.69, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for CAH in the last couple of days, which is a good sign.

Trading setups like NYSE:CAH

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout analyzer.