Cencora Rises 1.50% to $294.71 as Bullish Technicals Signal Rebound Potential

Cencora (COR) advanced 1.50% to close at $294.71 in the latest session, rebounding from the previous day's dip. The technical analysis below employs multiple frameworks to assess the stock's trajectory.
Candlestick Theory
Recent candlestick patterns show a bullish engulfing formation emerging at the $288-$290 support zone. The August 19th candle (open: $288.32, close: $294.71) completely enveloped the prior day's bearish candle, signaling strong rejection of lower prices. This aligns with the multi-month support established in mid-July. Immediate resistance is evident near $297.50-$298, coinciding with the August 15th and July 14th swing highs. A decisive close above $298 could trigger bullish continuation.
Moving Average Theory
The 50-day moving average (near $291) provided dynamic support during the August 18th selloff. The price remains above the 100-day and 200-day moving averages ($285 and $265, respectively), confirming the primary uptrend. Golden crosses persist across all relevant timeframes, with the 50-day maintaining its position above the 100-day. However, the proximity of the price to the 50-DMA suggests near-term consolidation is probable before further upside.
MACD & KDJ Indicators
MACD exhibits a potential bullish crossover, with the histogram turning positive after the August 19th rebound. KDJ oscillators simultaneously exited oversold territory (KDJ: 27.1 on August 18 to 42.3 on August 19), though neither indicator shows decisive momentum yet. This confluence suggests waning bearish pressure but requires confirmation through sustained recovery above $295. No significant divergence exists between price and momentum oscillators currently.
Bollinger Bands
Volatility contraction is evident, with bandwidth narrowing to 3.5% versus 5.2% in early August. Price rebounded from the lower Bollinger Band ($287) on August 18th, subsequently testing the middle band ($292) on August 19th. The current position midway between bands indicates equilibrium after recent volatility. A compression breakout above $295 could signal renewed directional momentum.
Volume-Price Relationship
The August 19th rally occurred on below-average volume (913k shares vs. 30-day avg: 1.2M), undermining conviction. Volume expanded significantly during the August 12th selloff (2.02M shares) and August 7th rebound (1.73M), establishing these as high-confidence pivot zones. The current volume profile suggests resistance near $297 may cap advances without increased participation. Bearish volume divergence emerged during the recent recovery attempt.
Relative Strength Index (RSI)
The 14-day RSI reading of 54.6 remains neutral after rebounding from near-oversold levels (41.2 on August 18th). The lack of overbought signals since July supports room for upside. However, the inability to breach 60 RSI during recent rallies warrants caution. Historically, decisive trend changes correlate with RSI sustaining above 60 or below 40 for multiple sessions.
Fibonacci Retracement
Using the swing low of $278.38 (May 12th) and high of $297.63 (August 15th), key Fibonacci levels emerge. The recent pullback found precise support at the 61.8% retracement ($288.50), establishing this as critical infrastructure. The 50% level ($291.50) now acts as immediate support, while the 38.2% level ($294.50) aligns with the current close. The 78.6% retracement at $284.50 represents major support if violated.
Confluence and Probabilities
Strong confluence exists at $288-$290 (Fibonacci 61.8%, 50-DMA, horizontal price supports). The rebound from this zone coinciding with bullish candlestick signals and positive MACD inflection increases confidence in near-term upside. However, volume divergence and RSI hesitation introduce skepticism regarding immediate breakout potential. Probability favors range-bound action between $290-$297 until either volume expands above 1.5M shares on an advance or the 200-day moving average support ($265) is tested. Traders should monitor the $297 resistance breach for bullish confirmation or $284 break for bearish continuation signals.