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Possible Bearish Inside Day Candle Pattern Detected for Cardinal Health (NYSE:CAH)

By Nick Russo

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Cardinal Health (NYSE:CAH) based on the price action in the company's shares. Today's price range of $65.69 and $66.86 is within yesterday's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Owners of Cardinal Health may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

Potential upside of 19.0% exists for Cardinal Health, based on a current level of $66.13 and analysts' average consensus price target of $78.68. The stock should find initial resistance at its 50-day moving average (MA) of $82.60 and further resistance at its 200-day MA of $83.11.

Cardinal Health, Inc. provides complementary products and services to healthcare providers and manufacturers. The Company's services include pharmaceutical distribution, health-care product manufacturing, distribution and consulting services, drug delivery systems development, pharmaceutical packaging, automated dispensing systems manufacturing, and retail pharmacy franchising.

In the past 52 weeks, Cardinal Health share prices have been bracketed by a low of $54.66 and a high of $85.52 and are now at $66.13, 21% above that low price. In the last five trading sessions, the 50-day moving average (MA) has fallen 0.3% while the 200-day MA has slid 0.2%.

SmarTrend recommended that subscribers consider buying shares of Cardinal Health on December 5th, 2017 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $60.51. Since that recommendation, shares of Cardinal Health have risen 10.9%. We continue to monitor CAH for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bearish inside day candle Cardinal Health

Ticker(s): CAH