MCK finds buyers again around 121.38
McKesson Corporation (MCK) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
MCK finished Thursday at 131.66 gaining $10.42 (8.59%) on low volume, significantly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 130.13, the stock confirmed its breakout through the previous session high after trading up to $1.90 above it intraday.
Daily Candlestick Chart (MCK as at Mar 26, 2020):
Thursday's trading range has been $10.65 (8.64%), that's slightly below the last trading month's daily average range of $11.42. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for MCK.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 17th, MCK actually lost -2.56% on the following trading day.
Prices are trading close to the key technical resistance level at 138.87 (R1). After having been unable to move lower than 120.12 in the prior session, the market found buyers again around the same price level today at 121.38.
Although McKesson is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
With prices trading close to this year's low at 112.60, downside momentum might speed up should the share break out to new lows for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for McKesson. Out of 557 times, MCK closed higher 53.50% 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 58.17% with an average market move of 0.62%.