Investors looking to play the distribution of a Covid vaccine should consider McKesson (MCK) , Jim Cramer told viewers of Mad Money Monday evening. Let's check out the chart of this company that distributes pharmaceuticals and provides health information technology, medical supplies, and care management tools.
In this daily bar chart of MCK, below, we can see that prices have broken out on the upside of a triangle formation that started back in May. MCK is trading above the rising 50-day moving average line and the rising 200-day moving average line.
Trading volume has been flat/neutral and so has the On-Balance-Volume (OBV) line.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in bullish territory but it has crossed to the downside for a take profits sell signal.
In this weekly bar chart of MCK, below, we can see the past four years of price action. MCK is breaking out to new highs for the move up.
The slope of the 40-week moving average line is positive.
The OBV line is steady and the MACD oscillator is bullish.
In this daily Point and Figure chart of MCK, below, we can see a potential upside price target in the $202 area.
Bottom line strategy: Trade MCK from the long side risking below $165. The $200 area is our first price target for now.
