McKesson Had a Bearish Engulfing Candle

Published on Tuesday, 31 August 2010 01:27 Written by Christian Paolinetti

New York, August 31st (TradersHuddle.com) - Shares of McKesson Corporation (NYSE:MCK) ended the trading session lower by $1.31 or -2.17% from its previous close. McKesson's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

McKesson Corporation (NYSE:MCK) distributes pharmaceuticals, medical-surgical supplies, and and health and beauty care products throughout North America. The Company also develops, implements, and supports software that facilitates the integration of data throughout the health enterprise.

McKesson's current stock range is defined by calculated support defined at $59.65 and by the resistance level at $62.90, which should be used by traders planning their trades.

Traders wanting to establish a position in McKesson stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current McKesson shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: