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Cardinal Health Stock Has Formed a Bullish Reversal Pattern

Guy Ortmann

The CAH chart, below, shows the stock price had been in a consistent downtrend from January of this year, making a series of lower lows and lower highs. The market selloff in October resulted in CAH successfully testing its $50.00 support level. Given that CAH had previously violated its downtrend, based for approximately six months and has now violated long-standing resistance with respectable volume, we believe it has formed a bullish reversal pattern.