NFTRH+; Look-Ahead to Potential Buy Opp. on a Diversified Medical Company

Cardinal Health is a company that I dealt with to a minor degree back when I worked in the real (as opposed to virtual) economy. We serviced some medical equipment projects for one of their engineering groups. Aside from medical devices, the company is integrated with medical services and pharmaceuticals. Importantly, this includes opioids, although it is a minor segment of the business about which the company is taking appropriate measures from a safety and education standpoint. Financially, the stock goes ex-dividend (.48/share) on March 31st.

Ah, but NFTRH+ cares only about charts so…

The price popped on earnings and left a gap below 53 that I don’t see filling any time soon unless something out of left field hits the company’s fundamentals (it had already been hit with a product recall before the earnings jump) or the market finally tops out, including healthcare.

Short of that, a lower risk buy point would be a pullback to support in the 55s if today’s little fade to fill the upper gap is not all there is to the pullback.

cah

The monthly chart is cool because the 2019 low came at major long-term support. Again, 55 looks like a good area to give it a try if it pulls back to test that support zone. Stop loss would be to suit risk tolerance below 55 with the understanding that it could drop to just below 53, fill the gap, test the SMA 50 (above) and find support there. So a really greedy buyer might keep it casually on radar on the chance that could come about.

A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the technical parameters are already noted. These updates are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.