Rectangle Pattern Suggests a Significant Move in McKesson (MCK) Soon

NYSE: MCK | McKesson Corporation  News, Ratings, and Charts

MCK – A rectangle pattern has formed in the chart of McKesson Corp. (MCK). If the stock breaks through the top of the rectangle, a breakout could occur. And if the stock falls below the bottom, a breakdown could occur. Read more to learn how to profit from this trade.

A rectangle pattern has emerged in the chart of McKesson Corp. (MCK).  If the stock breaks the top of the rectangle pattern, the resistance, a breakout could occur.  And if the stock falls below the bottom of the rectangle pattern, the support, a breakdown could occur.

MCK is the largest leading third-party logistics provider. The company is engaged in wholesale pharmaceutical and medical products sourcing, distribution and dispensing, contract manufacturing, and related IT services to acute care hospitals and health systems, independent and chain retail pharmacies in North America, Europe, and Canada.

MCK had a strong fiscal third quarter outperforming estimates. In November, the company completed the contribution of its German wholesale business to a joint venture with Walgreens Boots Alliance (WBA). It also introduced Ontada, an oncology technology and insights business in its U.S. Pharmaceutical segment.

The company had $3.6 billion in cash and cash equivalents as of the end of the year, compared with only $929 million in short-term debt. MCK has a stable history of revenue growth and is expected to increase revenue 4.1% this quarter. Earnings are forecasted to rise 16.9% in the same quarter.

The stock is trading at a low multiple with a trailing P/E of 14.38 and a forward P/E of 9.23. Its near-term performance has been trending downward, resulting in a Momentum Grade of C in our POWR Ratings system and can be seen in the chart below.

Take a look at the 1-year chart of MCK below with added notations:

  Chart of MCK provided by TradingView

After the November-December pop, MCK moved into a sideways trading range. While in the range, the stock has formed a resistance level at $187 (red), and a level of support at around $169 (green).  At some point, the stock will have to either break the resistance or the support.

The possible long positions on the stock would be either on a breakout above $187. The ideal short opportunity would be on a break below $169.

Want to Discover More Great Trades?

I have explored virtually every flavor of technical analysis and chart pattern known to mankind. The sad fact is that the vast majority of them don’t work at all.

That is why I recently put together this special report to help investors focus on the only 5 chart patterns that matter…the ones that lead to the most timely and profitable stock trades. Click below to get your copy now!

5 WINNING Stock Chart Patterns

Have a good trading day!

Good luck!

Christian Tharp, CMT


MCK shares were unchanged in premarket trading Monday. Year-to-date, MCK has declined -2.53%, versus a 2.89% rise in the benchmark S&P 500 index during the same period.

About the Author: Christian Tharp

I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group and Yolo Publishing. More...

More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
MCKGet RatingGet RatingGet Rating

Most Popular Stories on

:  |  News, Ratings, and Charts

3 Signs of a NEW Stock Market Bubble

Value investors are pounding the table that the stock market (SPY) is already in bubble territory not unlike 1999. Indeed they are right about the lofty valuation levels. But they are wrong that it’s time to get ready for the next bear market to emerge. Check out Steve Reitmeister's game plan to ride the bubble up and then parachute out at the right time. Read on for more...

:  |  News, Ratings, and Charts

Top 10 Value Stocks

The S&P 500 (SPY) has shown mixed results in the last week, but if you are a value investor, then yesterday was a big day. That’s when we revealed to our readers the fatal flaws of traditional value investing and the solution to this problem—our Top 10 Value Stocks strategy. Read on below to find out more about this 3-step process and its +38.63% annual returns…

:  |  News, Ratings, and Charts

3 Housing Market Stocks to Buy on the Dip

The housing market's strength is going to continue well into the next decade due to favorable supply and demand factors.

:  |  News, Ratings, and Charts

Finding Gems Amid the Market Wreckage

The S&P 500 (SPY) selloff has intensified this past week. So far, it’s looking and behaving like a culmination of the market’s rotation out of growth stocks. We’ve seen big declines in certain parts of the market from the big winners of 2020 that peaked in mid-February. Since their recent highs - the cannabis ETF (MJ) is down 44%; the cloud computing ETF (WCLD) is down 27%; and the semiconductor ETF (SMH) is down 14%. In today’s commentary, I cover some of the opportunities that have been created, ways to take advantage, and what I’m monitoring when it comes to the broad weakness in the market. Read on below to find out more…

:  |  News, Ratings, and Charts

3 Housing Market Stocks to Buy on the Dip

The housing market's strength is going to continue well into the next decade due to favorable supply and demand factors.

Read More Stories

More McKesson Corporation (MCK) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All MCK News