CAH – Cardinal Health Incorporated
Another monthly rounding pattern looks very positive for this stock.
CAH – Cardinal Health Incorporated
Date: 25 June 2026
Sector: Distribution Services / Medical Distributors
Exchange: New York Stock Exchange
TradingView link: 1M candles & 4H candles:
Opening/macro/sector context
I have marked this stock out as an interesting story.
Obviously, the fact that Cardinal Health is moving out to all-time highs is interesting in itself, but what also stands out is the chart pattern forming on the monthly timeframe.
One thing I noted about this particular stock is that, given the space it is in, you might have expected it to reach all-time highs during the pandemic. It would have been reasonable to assume that this stock might have attracted more attention at that time.
But in fact, during that period, Cardinal Health seemed to just move sideways.
Meanwhile, other medical-related stocks, such as Moderna, were moving out to all-time highs.
Now the reverse is true.
Cardinal Health is heading out to all-time highs, while Moderna is still attempting to claw back some of the momentum it had during the pandemic.
Generally speaking, Moderna has not lived up to the price momentum we saw during that period.
That makes Cardinal Health interesting because it is now showing strength at a time when some of the more obvious pandemic winners are not.
Long-term structure
Cardinal Health has been around for a very long time.
We have to go all the way back to 1 September 1983, when the stock first floated at less than $1.
Had you been brave enough to hold it all that time, you would now be looking at a mighty return of around 15,000%.
The long-term structure of the stock can be marked out by three distinct bullish phases.
The first bullish phase lasted until the stock entered the first pink box, after which it moved sideways.
After that, Cardinal Health broke out again, entered another bullish phase, and then moved sideways once more.
That second sideways period then formed a U-shaped return to the top of the pink box.
After that, there has not really been much opportunity or much need to draw further boxes.
During this time, the stock has been moving up, and to the right.
What really interests me in this stock is marked out by the three pink curved lines.
Every time Cardinal Health has had a pullback on the monthly timeframe lasting around three or four bars and then produced the next blue candle, it has gone on to deliver a strong bullish impulse higher.
That can be seen clearly through each of the pink curved lines I have marked on the chart.
This stock has now just completed another bottoming pattern on the monthly timeframe.
This month, we have seen a very large bullish impulse, taking out and engulfing several previous candles.
That is very strong price action and a very bullish engulfing bar on the monthly timeframe.
Lower timeframe / recent structure
Dropping down to the 4-hour timeframe, we can see that Cardinal Health gapped open on 30 October 2025.
After that, I could probably have drawn a pink box around all of this price action following the breakout.
The reason I did not do that is that it would have made the chart look confusing, especially with the pink curve already marking out the rounding pattern.
But if we imagine that pink box is there, we can see that Cardinal Health has now just popped above the top of that box, around $234.
That gives us an opportunity to see whether this stock has the potential and momentum to continue moving out to all-time highs.
Looking at the evidence already mentioned in this analysis, it looks more likely than not, on the balance of probabilities, that the stock has the strength to continue higher.
Entry trigger:
Usual entry trigger is one of two things:
Three clean closes above the last breakout of the pink box.
A breakout of the pink box, followed by a pullback to touch the top of the box, and then a move higher.
Initial stop loss:
Last 4-hour swing low.
Multi-timeframe correlation:
3M: Blue candle
1M: Blue candle
1W: Blue candle
1D: Blue candle
4H: Blue candle
When should I tighten the stop-loss?
When do I add to the position?
The best way to add to the position is on a pullback from a yellow to blue candle, or from a grey to blue candle, as price starts to move back up and attempts to break out again.
Potential target range:
$238 – $411
Activated price targets:
2
Am I in this trade?
Yes
Current R multiple:
-0.05R