McKesson Jumps 3.26% in Bullish Reversal as Technicals Signal Short-Term Upside

McKesson (MCK) rose 3.26% in the most recent session, closing at $760.55, marking a robust recovery from the previous day's sharp decline.
Candlestick Theory
Recent candlestick patterns highlight significant volatility. The September 25 session produced a long red candle with a high of $763.01 and low of $715.31, reflecting intense selling pressure. This was followed by a decisive bullish engulfing pattern on September 26, where the price opened near $741.78 (testing support) and closed at $760.55, fully engulfing the prior day’s body. Key support now resides at $715.31, while resistance is established at $770.00 (September 24 high). This reversal pattern suggests potential short-term upside momentum, contingent on holding above $741.78.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit a bullish alignment, with the price trading above all three. The 50-day SMA (approximately $710) recently crossed above the 200-day SMA (near $675), confirming a long-term bullish structure. The current price ($760.55) holding firmly above the 50-day SMA reinforces the uptrend. However, the gap between the price and the 50-day SMA may invite short-term consolidation before further advances.
MACD & KDJ Indicators
The MACD shows a potential bullish crossover, as the histogram shifts toward positive territory following the recent rebound. This signals waning bearish momentum. KDJ readings are elevated, with the %K line at 88.5 and %D at 82.3, indicating overbought conditions. While this suggests near-term exhaustion risk, the strong upward trajectory could sustain overbought status temporarily. Divergence is noted: KDJ’s overbought signal contrasts with MACD’s nascent recovery, implying internal conflict between immediate profit-taking pressure and resurgent bullish momentum.
Bollinger Bands
Bollinger Bands have expanded significantly during the September 23–26 volatility, reflecting heightened instability. The price rebounded from the lower band ($715) and now tests the mid-band ($740), poised for a potential challenge of the upper band near $780. Band expansion after contraction (evident in early September) typically precedes directional momentum; a close above the mid-band would favor bullish continuation.
Volume-Price Relationship
Volume analysis reveals skepticism toward the rebound. The September 25 sell-off recorded 1.54 million shares (highest volume in 30 days), validating downside conviction. Conversely, the 3.26% rally on September 26 saw only 819K shares—below average and signaling tepid buying participation. This volume divergence undermines the sustainability of the recovery and warrants caution unless subsequent sessions confirm with elevated volume.
Relative Strength Index (RSI)
The 14-day RSI currently reads 62, rebounding from oversold levels near 30 during the September 25 plunge but remaining below overbought territory (70). This positions MCK with moderate upward runway before reaching overheated conditions. The RSI’s recovery aligns with price action but lacks the intensity seen during prior rallies, reflecting residual caution. Probabilistically, it suggests neutral-to-bullish momentum, but its middling level offers limited standalone conviction.
Fibonacci Retracement
Applying Fibonacci retracement to the swing high of $770.00 (September 24) and swing low of $715.31 (September 25), key levels emerge: 38.2% ($745.82) and 61.8% ($762.87). The close at $760.55 places MCK near the 61.8% retracement—a critical resistance zone. A decisive breakout above $762.87 could trigger run-up toward $770. Confluence exists here, as this level aligns with the September 25 high ($763.01), creating a high-probability pivot area for near-term direction.
Confluence and Divergence
Confluence is observed at $715–$718, where the recent low coincides with Fibonacci 100% retracement and the psychological support level. Bullish agreement appears in the MACD recovery, RSI neutrality, and moving average stack. However, critical bearish divergence exists in the volume-price dynamic and KDJ’s overbought signal. These conflicting forces suggest a tug-of-war: technical recovery is probable short-term, but volume skepticism and Fibonacci resistance at $763 warrant monitoring for reversal triggers near current levels.