McKesson: A Boring Stock Plods Higher
Drug distributor McKesson has been a surprising breakout stock in 2022 thanks to strong earnings. It’s the 14th-best performing member of the S&P 500 this year, according to TradeStation data. MCK is also the biggest gainer apart from inflationary plays like energy and fertilizers.
Nonetheless, it’s been relatively quiet for several months as the earlier surge is digested.
The first pattern on today’s chart is the level around $340, near MCK’s peak in May. The stock tested that area in late September and bounced, which could mean old resistance has become new support.
Second is the confluence between that price zone and the 100-day simple moving average (SMA). Also notice how MCK bounced at the 100-day SMA in June.
Third, MACD just turned higher.
Finally, this week’s bounce reestablishes MCK above its 50-day SMA and 21-day exponential moving average (EMA). Is the trend turning favorable again?
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This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
Nonetheless, it’s been relatively quiet for several months as the earlier surge is digested.
The first pattern on today’s chart is the level around $340, near MCK’s peak in May. The stock tested that area in late September and bounced, which could mean old resistance has become new support.
Second is the confluence between that price zone and the 100-day simple moving average (SMA). Also notice how MCK bounced at the 100-day SMA in June.
Third, MACD just turned higher.
Finally, this week’s bounce reestablishes MCK above its 50-day SMA and 21-day exponential moving average (EMA). Is the trend turning favorable again?
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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