Cardinal Health, Inc. is a global healthcare services and products company. Co. is engaged in providing customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices and patients in the home. Co. also provides pharmaceuticals and medical products. Co.'s segments include Pharmaceutical and Specialty Solutions and Global Medical Products and Distribution (GMPD). The Pharmaceutical and Specialty Solutions segment distributes branded and generic pharmaceuticals, specialty pharmaceuticals and over-the-counter healthcare and consumer products in the U.S..
When researching a stock like Cardinal Health, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from CAH Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for CAH stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the CAH 200 day moving average ("CAH 200 DMA"), while one of the most popular "shorter look-backs" is the CAH 50 day moving average ("CAH 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Cardinal Health. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the CAH 200 DMA and the CAH 50 DMA, we get a moving average convergence divergence indicator ("CAH MACD"). The CAH MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis