MCK closes within previous day's range after lackluster session
McKesson Corporation (MCK) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, MCK finished Monday at 158.94 edging higher $0.27 (0.17%) on low volume, slightly underperforming the S&P 500 (0.38%). Today's close at 158.94 marks the highest recorded closing price since February 26th. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (MCK as at Jun 01, 2020):
Monday's trading range has been $2.96 (1.87%), that's below the last trading month's daily average range of $4.82. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for MCK. Prices continued to consolidate within a tight trading range between 155.10 and 160.58 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on April 23rd, MCK gained 2.47% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 155.10 where further sell stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for McKesson. Out of 719 times, MCK closed higher 56.33% 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 58.41% with an average market move of 0.72%.