McKesson: A Boring Stock Plods Higher

NYSE:MCK   McKesson Corporation
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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