November 17 Chart of the Day - McKesson
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McKesson Corporation (MCK) is an American company distributing pharmaceuticals and providing health information technology, medical supplies, and care management tools. The company delivers a third of all pharmaceuticals used in North America and employs over 78,000 employees.
The company was also reported to be one of Berkshire Hathaway's top 30 holdings and as such garners significant amounts of attention.
Warren Buffet, often referred to as the "Oracle of Omaha," sure does know how to pick his stocks!
The company's stock price has skyrocketed from its COVID lows around $75 to its new $473.18 all time high (ATH) set earlier this week.
From a price action technical analysis perspective we can see on the monthly chart the meteoric rise blowing through its previous $250 ATH set back in 2015.
Whenever a chart is trading at or near its current or recent ATH trading and investing in it can be more challenging due to the lack of historical price data around the levels.
But we can use Fibonacci and Advanced Fibonacci techniques to formulate investment and / or trade plans.
Our primary goal is to create bi-directional levels of interest. For this we drop down to the daily chart to provide this type of information from which to develop a plan from. Knowing that staying on the sidelines could be part of the overall plan for this stock.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
Take a look at the charts and let us know what you think.
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