As of this writing, the market is looking bearish once again.
With the terrible turmoil in the Middle East combining with more Fed Chairman Powell talk, rising Treasury yields, and a bad report from TSLA, stocks are having a hard time feeling positive.
But these are exactly the circumstances where future big breakouts show their hands.
Remember, stocks that are strong during weakness are ones to watch closely.
And Cardinal Health (CAH) is one of those.
The last time we talked about CAH was in early August, and it looked like it might be ready to break out.
But bearishness took over and the stock fell sharply.
However, it’s bounced nicely off our 30-week simple moving average, and now is storming back up to the breakout level at $95.45.
A break of that level could lead to an explosive move.
Happy trading,
— Scott Welsh
P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The chart above uses weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45.
