If I'm a bull, I'm not messin' with McKesson (MCK) at the moment. In fact, if I'm a bear, I'm getting excited about this daily chart.
The stock made a strong push in April, but after a late-month drop led to a small recovery bounce, a bearish pattern has set its sights on the stock. This bounce from $165 to $174 has rolled over and now looks more like a bearish flag of a bounce or even a bearish head-and-shoulders pattern here targeting a retrace of the April move and potentially landing MCK back in the $155-$157 range. Price appears to be proceeded by bearish technicals. The longer-focused MACD has been trending lower since late April and we've seen the StochRSI rejected twice by the 50-day simple moving average and now is on the verge of making a new low in front of price. Lastly, the Full Stochastic bounce has ended just under 50 and crossed bearish again. Price has failed to rally in the last six months when these conditions were present. A close under $164-$165 area and we should see a trigger for a quick selloff.
The weekly chart shows support around $160, so that would be my initial expectations if the current support fails to hold on the daily chart. While price is still above support and the MACD has yet to turn bearish, we are seeing multiple bearish crossovers this week throwing out a triple threat of yellow flags.
The most concerning crossover for me is the Full Stochastics. The rejection from the 80 mark along with a bearish crossover has been devastating for the bulls for the last 12 years. It has been ever more so when combined with the bearish crossovers in the Chaikan Oscillator and StochRSI. If I'm bearish here, I'm not backing down unless we see a weekly close over $175, maybe even $180.
For more conservative bears, you'll want to see a close under $160 on a weekly basis to trigger a short and target $140 on the downside with a consideration to take some profits around $150.
Overall, this looks like a tough spot for MCK bulls. If I'm long, I would feel a need to hedge my position and if I'm considering a long entry, then I'm waiting patiently for a better setup. Bears have the upper hand and if the overall market doesn't strength. This looks like a name they only have to lean on a little to receive a lot of reward.