The market’s been a choppy mess since the election, but that’s exactly when the best setups emerge. While most traders are getting chopped up trying to swing trade this range, I’ve spotted something exceptional in Cardinal Health (CAH).

We’re seeing a rare eight-layer squeeze setup with perfectly stacked EMAs – the kind of technical alignment that often precedes major moves. Let me show you exactly what I’m seeing…

Healthcare stocks might not be grabbing headlines right now, and sure, there’s some sector uncertainty with the new administration. But that’s the beauty of technical trading – I let the charts, not opinions, guide my decisions.

And right now, the technical structure is telling quite a story

The Technical Picture

Our S.A.M. AI Scanner has identified something I rarely see – squeeze formations aligning across eight different timeframes: daily, 195-minute, 130-minute, 78-minute, hourly, 30-minute, 15-minute, and 10-minute charts.

What makes this even more compelling is that CAH is showing this compression while maintaining strength near its 52-week highs of $132.84.

When I see this kind of multi-timeframe compression combined with price strength, it often signals a stock coiling for a significant move.

EMA Structure

The daily and weekly charts show perfectly stacked Exponential Moving Averages, creating a strong technical foundation. When EMAs align in this ‘stair-step’ pattern (8 above 13, above 21, above 34, above 55), it typically signals robust trend strength.

But what makes this setup particularly compelling is that CAH isn’t just showing this alignment on one timeframe – we’re seeing it on both daily and weekly charts.

This kind of dual-timeframe EMA structure often acts as dynamic support, creating a ‘launching pad’ effect where each EMA can serve as a springboard during pullbacks.

When you combine this EMA foundation with our eight-layer squeeze setup, it’s like having both a loaded spring and a strong floor underneath. The EMAs provide the structural support, while the squeeze formations suggest growing pressure for a move higher.

Company Overview

While I primarily trade technical setups, it’s worth noting that the underlying business is showing strength too. CAH recently raised their full-year earnings guidance to $7.85-$8.00 per share, driven by specialty growth and recent acquisitions.

This fundamental backdrop adds another layer of confidence to what the technicals are telling us – but make no mistake, it’s the technical setup that’s driving my trading decisions here.

Your Action Plan

Several technical factors make CAH worth watching closely:

• Eight-Layer Confirmation Multiple timeframe squeeze alignments provide exceptional setup validation.
• Scanner Verification S.A.M. AI Scanner identification adds technical credibility.
• Strong Technical Foundation Stacked EMAs on daily and weekly charts create a solid support structure.
• Affordable Options Positioning Low premium environment allows for strategic position building.

I don’t currently have a position in CAH, but I’m watching this setup closely for a potential long options play.

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