Cano Health (CANO) provides primary care services for seniors and its charts and indicators are looking bullish and youthful. Let's check.
In this daily bar chart of CANO, below, we can see that prices have been bottoming for the past seven months. Prices have trended sideways and CANO rallied above the 50-day moving average line and then pulled back to retest the line in July. The declining 200-day moving average line intersects slightly above the market around $7.10 or so. There are two large volume surges in late June and early July and the On-Balance-Volume (OBV) line shows improvement from late June. The Moving Average Convergence Divergence (MACD) oscillator is now above the zero-line in buy territory.
In this weekly Japanese candlestick chart of CANO, below, we can see a number of bullish candle patterns the past five months. Prices are getting close to a test of the declining 40-week moving average line. The weekly OBV line shows a March-June double bottom. The MACD oscillator is improving.
In this daily Point and Figure chart of CANO, below, we can see an upside price target in the $9 area.
Bottom line strategy: Traders could approach CANO from the long side for a trade -- try to buy a shallow dip risking below $5. The $9 area is our price target for now.
