CAH Daily (NYSE) -- Cardinal Health Source: TradeStation

The stock now has very strong support between the $34.40 to $33.60 area. A low-volume pullback to this area would provide a low-risk buying opportunity. On the upside, the stock will have some considerable hurdles to overcome. The area of multi-week highs left behind during May and early June will likely bring out some heavy supply. This area extends from $36.45 to $37.25 and includes the daily high from June 2. Cardinal Health had one of its worst downside days in the past year with a 10% drop on near-record volume on June 2. I doubt this area will stop this rally for long. I expect a healthy pullback from here. A run up to $40.00 is my upside target for this move, which would re-test the highs for 2009 and complete a 20% rally from this week's lows.

At the time of publication, Morrow had no positions in the stocks mentioned.

Know what you own: Other medical equipment stocks include AmerisourceBergen (ABC - commentary - Trade Now), McKesson (MCK - commentary - Trade Now), Owens & Minor (OMI - commentary - Trade Now), PSS World Medical (PSSI - commentary - Trade Now), Patterson Companies (PDCO - commentary - Trade Now) and Henry Schein (HSIC - commentary - Trade Now).