McKesson Corp. (MCK) , the drug distributor, has been getting plenty of attention with the roll out of the Covid-19 vaccines. We looked in on MCK back on December 18 (https://realmoney.thestreet.com/investing/stocks/mckesson-s-rally-has-further-to-go-15521329) where we wrote, "Continue to hold longs on MCK recommended in November risking a close below $165. Our longer-term price targets lie in the $225-$250 area."
What do the charts look like now?
(For more on MCK, see Jim Cramer: Here's My Plan to Distribute the Vaccine)
In this updated daily Japanese candlestick chart of MCK, below, we can see that since our December 18th review prices have successfully tested the rising 50-day moving average line.
The 200-day moving average line continues to display a positive trend and the On-Balance-Volume (OBV) line has remained steady.
The Moving Average Convergence Divergence (MACD) oscillator is on the zero line but has narrowed and could soon cross to the upside for a fresh outright buy signal.
In this weekly Japanese candlestick chart of MCK, below, we see a mixed picture. Prices have been consolidating earlier gains and remain above the rising 40-week moving average line. The $170 area seems to be acting as support.
The OBV line has been steady suggesting a balance between bullish and bearish traders. The MACD oscillator is still bullish but has narrowed in recent weeks.
In this daily Point and Figure chart of MCK, below, we can see an upside price target of $208.
Bottom line strategy: Continue to hold longs on MCK recommended in November, risking a close below $165. Our price targets are $208 followed by the $225-$250 area.
