MCK closes higher for the 6th day in a row
McKesson Corporation (MCK) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, MCK finished the week 6.85% higher at 122.16 after gaining $0.12 (0.1%) today on low volume, slightly outperforming the S&P 500 (-0.01%). Today's close at 122.16 marks the highest recorded closing price since December 13, 2018. Trading up to $1.10 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (MCK as at Jan 11, 2019):
Friday's trading range has been $2.26 (1.86%), that's far below the last trading month's daily average range of $3.72. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MCK.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 120.02 (S1). Prices are trading close to the key technical resistance level at 124.20 (R1). After having been unable to move above 122.59 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 122.46. The last time this happened on Wednesday, MCK actually gained 3.20% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 122.59 where further buy stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for McKesson. Out of 798 times, MCK closed higher 52.51% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 59.02% with an average market move of 0.73%.