During Thursday's fast-paced Lightning Round segment of Mad Money one caller asked Jim Cramer about McKesson (MCK) , which distributes pharmaceuticals and health information technology, medical supplies, and care management tools. Cramer said: "I think they're doing a great job."
We were bullish on MCK on Nov. 24, writing that traders should, "Trade MCK from the long side risking below $165. The $200 area is our first price target for now."
Let's check out the charts again.
In this updated daily bar chart of MCK, below, we can see that the shares have been digesting and consolidating the gains achieved in early November. Prices are above the rising 50-day moving average line and a dip closer to the line is probably a buying opportunity. The 200-day moving average line is bullish.
The On-Balance-Volume (OBV) line shows a slight decline from the middle of November suggesting that traders have done some profit-taking as selling does not appear to be too aggressive. The Moving Average Convergence Divergence (MACD) oscillator has been weakening since the middle of November but it remains above the zero line at this point in time.