Trading Idea - Is Cardinal Health close to Support?

Published on Wednesday, 25 August 2010 19:24 Written by Christopher Lynn

New York, August 25th (TradersHuddle.com) - Shares of Cardinal Health, Inc. (NYSE:CAH) are trading very close to calculated support at $30.60 with current price action closing at just $31.08 places the stock price near levels where traders will start paying attention.

Cardinal Health, Inc. (NYSE:CAH) provides products and services to healthcare providers and manufacturers. Its services include pharmaceutical distribution, health-care product manufacturing, distribution and consulting services, drug delivery systems development, pharmaceutical packaging, automated dispensing systems manufacturing, and retail pharmacy franchising.

Cardinal Health's current stock range is defined by current calculated support defined at $30.60 and by the resistance level at $33.51, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to Cardinal Health's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $33.51 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.