Trading Idea - Is McKesson close to Support?

Published on Sunday, 22 January 2012 19:36 Written by TradersHuddle Staff

New York, January 22nd (TradersHuddle.com) - Shares of McKesson Corporation (NYSE:MCK) ended close to calculated support at $74.89 with current price action placing the stock near levels that will raise attention of traders looking for an entry point.

McKesson's current stock range is defined by current calculated support defined at $74.89 and by the resistance level at $82.26, which could be used as a reference by traders planning their trades. The area defined as calculated support, is where buying might materialize, which could provide a lift to shares of McKesson Corporation. However, this area if breached will signal participants that the stock failed to entice buyers to step in and support the stock.

Traders wanting to establish a position should pay close attention to McKesson's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $82.26 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.

Shares of McKesson Corporation closed at $76.51 in the previous trading session.

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.