McKesson (MCK) has taken a drubbing in recent months but it has yet to display any bottoming price action.
This short-term chart of MCK, above, shows how quickly a stock can go from up to down. MCK peaked in May and had a hard decline in August. The August decline was retested in October, but the recovery only lasted two months before renewed selling appeared. Recently, prices gapped down below the October low, putting all longs on the defensive. The lower lows in price have yet to generate a bullish divergence from the momentum study.
In this long-term chart of MCK, above, we can even see the gap down that is visible in the daily chart. MCK has been below the declining 40-week moving average for months now, so we know the trend is down. The OBV line is edging lower on this timeframe. Again, no divergences are visible yet from the momentum study on this timeframe. The real bad news of this chart is the lack of support. Below $160 the next chart support is not until the $120 level on the chart. Buying could appear at other levels, but just reading the chart action from the right side of the chart to the left, we see $120 as the next stopping point.