Cardinal Health Shares Edge Up 0.29% to $153.53 Amid Key $152-$155 Range Battle

Cardinal Health (CAH) shares rose 0.29% in the most recent session, closing at $153.53 amid trading between $152.06 and $153.849. This price action occurs within a broader context of significant appreciation from sub-$100 levels a year ago, now consolidating near all-time highs.
Candlestick Theory
Recent candlesticks reflect indecision after Cardinal Health's sustained uptrend. The June 11 session formed a small bullish candle following consecutive bearish days, suggesting tentative support near $152 (tested June 9-10). Resistance remains pronounced at $155, evidenced by multiple rejected advances in early June (June 3, 5, and 6) culminating in long upper wicks. This establishes a near-term range between $152 support and $155 resistance. The absence of reversal patterns (e.g., bullish engulfing) at current levels tempers conviction in directional resolution.
Moving Average Theory
Cardinal Health maintains bullish long-term structure, trading well above its rising 200-day moving average (~$130). The 50-day MA (~$150) and 100-day MA (~$140) exhibit upward slopes, with the 50-day recently providing dynamic support during May's pullback. The current price hovering above all key MAs confirms an uptrend, but proximity to the 50-day MA underscores its criticality as a failure point. Sustained trade below $150 would signal deteriorating medium-term momentum.
MACD & KDJ Indicators
The MACD histogram has turned negative following a bearish crossover in early June, signaling fading upward momentum. This aligns with the KDJ indicator, where the %K line (32) is converging toward %D (38) near oversold territory. Both oscillators suggest short-term bearish pressure but also hint at a potential rebound opportunity should momentum stabilize in the oversold zone. Divergence is noted versus price, which remains elevated despite weakening oscillator readings.
Bollinger Bands
Volatility has contracted significantly, with the bands narrowing after May's expansion. Price currently straddles the middle band (20-day MA ~$154), lacking decisive directional bias. This compression typically precedes a volatility expansion. A breakout above $155 would challenge the upper band (~$157), while failure at $152 could accelerate a test of the lower band (~$151). The bands' symmetrical shape offers no directional bias.
Volume-Price Relationship
Volume profiles reveal concerning signals: Down days (e.g., June 10: -0.35% on 2.26M shares) occurred on higher volume than recent up days (June 11: +0.29% on 2.16M shares). This distribution pattern near resistance suggests weak conviction in breakout attempts. Longer-term volume support remains intact, however, as major advances (e.g., April-May rally) featured volume expansions exceeding 3M shares.
Relative Strength Index (RSI)
The 14-day RSI reads 52, squarely neutral after retreating from near-overbought (68) in late May. This cooling reflects the recent consolidation without triggering oversold alarms. The indicator's mid-range position offers limited directional guidance but reinforces the loss of momentum signaled by MACD/KDJ. Divergence exists relative to price, which remains near highs despite RSI's decline from its peak.
Fibonacci Retracement
Applying Fibonacci to the primary uptrend (swing low $96.05 on August 8, 2024, to high $155.82 on June 3, 2025) identifies key levels. The 23.6% retracement ($150) aligns with the 50-day MA and the June 10 low—a major confluence support zone. Deeper support rests at 38.2% ($138). Current price action above $150 maintains the bullish structure, but a breach would open risk toward $138. Resistance beyond $155 remains uncharted.
Confluence and Divergence Summary
Strong confluence supports $150–152, combining the 23.6% Fibonacci level, 50-day MA, and recent price reactions. Divergence appears between oscillators (bearish momentum) versus moving averages and Fibonacci (bullish structure). Volume divergence near $155 resistance adds caution. Resolution hinges on a decisive break above $155 (resuming uptrend) or below $150 (triggering a deeper correction toward $138).