MCK closes higher for the 2nd day in a row
McKesson Corporation (MCK) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MCK ended the month -3.31% lower at 153.42 after gaining $1.65 (1.09%) today, slightly underperforming the S&P 500 (1.54%). Closing above Monday's high at 152.32, the share confirmed its breakout through the prior session high after trading up to $2.17 above it intraday.
Daily Candlestick Chart (MCK as at Jun 30, 2020):
Tuesday's trading range has been $4.53 (3.0%), that's slightly above the last trading month's daily average range of $4.44. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for MCK. Prices continued to consolidate within a tight trading range between 147.20 and 154.49 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical support level at 151.32 (S1).
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 158.44 where further buy stops could get activated.
Among the four 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 779 times, MCK closed higher 53.27% 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 58.79% with an average market move of 0.81%.