MCK stuck within tight trading range
McKesson Corporation (MCK) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
MCK finished the week 7.49% higher at 168.03 after edging higher $0.12 (0.07%) today on high volume, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 168.03 marks the highest recorded closing price since January 31, 2018. Trading up to $2.84 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Tuesday, MCK gained 2.05% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MCK as at Feb 14, 2020):
Friday's trading range has been $4.25 (2.54%), that's slightly above the last trading month's daily average range of $4.08. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for MCK. Prices continued to consolidate within a tight trading range between 164.04 and 169.67 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Hanging Man.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 169.67 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for McKesson. Out of 784 times, MCK closed higher 52.55% 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 58.55% with an average market move of 0.76%.