August 13 Chart of the Day - Cardinal Health
Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews
Ohio based Cardinal Health, Inc. (CAH) is a multinational health care services company and according to published reports is the 14th highest revenue generating company in the US.
The company specializes in the distribution of pharmaceuticals and medical products, serving more than 100,000 locations.
They report earnings before market open on Wednesday so we wanted to review their chart from a price action technical analysis perspective.
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Monthly Chart
On the monthly chart we can see that after setting its $116.04 all time high (ATH) earlier this spring price is doing what price does when that happens... chilling just below that level.
Whenever price is trading at or near all time highs like this we are often limited in the price action tools that can reliably be used to help identify potential price levels of interest.
Namely: Fibonacci, Trend, and occasionally support/resistance in the form of a previous ATH.
Weekly Chart
On the weekly chart we can see with much more clarity price setting ATHs and fading and cycling back down towards previous structure.
We've layered in multiple bull Fibonacci stacks and noticed that the last bull impulse Fibonacci's 50% retracement aligns with a previous ATH in the $92.50 area.
Trading at $101.75 earlier today the market is implying about a $5.15 move in either direction as marked on the weekly chart by this Friday August 16.
Will earnings be the catalyst to push price back up towards ATH or will it further push price to the downside?
Only time will tell for sure what price will do next...
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think.
We'd like to hear from you in the comments sections.
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