MCK pushes through key technical resistance level
McKesson Corporation (MCK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
MCK ended the week 9.51% higher at 149.42 after gaining $3.60 (2.47%) today on low volume, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 149.42 marks the highest recorded closing price since March 4th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 149.40, the market confirmed its breakout through the previous session high after trading up to $0.60 above it intraday.
Daily Candlestick Chart (MCK as at May 22, 2020):
Friday's trading range has been $4.11 (2.82%), that's slightly below the last trading month's daily average range of $4.95. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for MCK.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 147.11 (now S1), which is likely to act as support going forward. The last time this happened on May 15th, MCK gained 4.57% on the following trading day. After having been unable to move above 149.40 in the prior session, McKesson ran into sellers again around the same price level today, missing to move higher than 150.00.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 151.32 where further buy stops might get triggered.
Among the 10 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 781 times, MCK closed higher 53.01% 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 58.39% with an average market move of 0.75%.