Breakout to Pullback: A Technical Trader's Guide to MCK, PAHC, and TPR

The market is showing clear momentum, but the strength and sustainability of moves vary sharply between names. Let's cut through the noise and look at the pure price action.

McKesson Corp (MCK) is the standout breakout story. The stock exploded 16.52% to $957.80 on Thursday, a move that broke decisively above its long-term trendline. This isn't just a pop; it's a technical reassertion. The key level was the 200-day moving average, which the price now sits well above. Volume behind this surge confirms the buying conviction. The setup is classic: a powerful move above a major moving average signals a shift in momentum from sellers to buyers. The immediate resistance is now the $847.951 level, but the 52-week high at $971.93 is the next major target. The RSI is flashing overbought, which is a cautionary note, but the overall technical consensus remains a strong buy.

Turning to TPR, the momentum is also strong, though the move is more measured. The stock jumped 10.2% to $143.19, closing above its 52-week high. This is a clean breakout above a key psychological and technical resistance level. The volume on this move would be the tell for whether it's a sustainable trend or a short squeeze. The price action shows buyers have taken control, pushing the stock into new territory.

Now contrast that with PAHC. The technical picture here is notably weaker. While MCK and TPR are making new highs, PAHC is stuck in a consolidation pattern. Its price prediction for the week is a modest +2.87%, indicating low momentum. More critically, it's trading near a key support level at $92.62. This is a zone where the market is testing the bottom of its recent range. A break below this level would signal a loss of bullish momentum and could trigger a deeper pullback. For now, the setup is one of indecision, not breakout.

The bottom line is one of divergence. MCK and TPR are showing strong, volume-supported moves above key resistance, signaling a bullish shift in supply and demand. PAHC is showing the opposite-a price action that is struggling to break out and now testing critical support. In a choppy market, the names making new highs with conviction are the ones to watch.

Overbought Signals and Key Resistance Levels

The momentum in MCK and TPR is undeniable, but the technical indicators are flashing warnings. Both stocks are now in overbought territory, which increases the risk of a near-term pullback as profit-taking sets in.

For McKesson (MCK), the overbought signals are severe. The Relative Strength Index (RSI) sits at 76.243, well into overbought territory. More critically, the stochRSI has hit a maximum 100.000, a rare signal that the stock has exhausted its recent upward momentum. The Williams %R at -8.222 confirms this is a stretched condition. This isn't a minor warning; it's a classic overbought setup that often precedes a consolidation or correction. The immediate resistance is the $847.951 level, but the real ceiling is the 52-week high at $971.93. A break above that would be needed to extend the bullish trend, but the overbought conditions suggest the path of least resistance is now sideways or down.

Tapestry (TPR) shows a similar but slightly less extreme picture. Its RSI is at 70.077, which is still in overbought territory. The stochRSI also maxed out at 100.000, and the Commodity Channel Index (CCI) is at 333.7497, another overbought reading. The bullish potential from here is minimal, with the tool showing a mere 1.87% to its recent high. This indicates the breakout above its 52-week high is already priced in, leaving little room for upside before the next test of resistance. The stock is now facing a ceiling at its recent high of $145.42.

The contrast with PAHC is stark. While the other two are overbought, PAHC is not in a breakout mode at all. Its immediate resistance is the $116.38 level. For the bullish trend to continue, the stock must break and hold above this key resistance. Until it does, the price action remains range-bound, and the risk of a breakdown below its support at $92.62 remains the primary threat.

The bottom line is one of technical exhaustion. MCK and TPR have made powerful moves, but their overbought indicators suggest a pause is likely. Traders should watch for a break of the immediate resistance levels to confirm if the uptrend has legs or if a pullback is imminent.

Support Levels and Pullback Targets

The breakout momentum in MCK and TPR is real, but every rally needs a place to catch its breath. For traders, the key is identifying where buyers step in during a correction and where the risk of a deeper slide begins.

For McKesson (MCK), the support structure is clear. The stock is trading well above its long-term 200-day moving average of $753.792, which acts as a major floor. More immediate is the Fibonacci floor at $785.425. This is the first line of defense if the price starts to roll over. The critical warning level is the $805.901 support. A break below this key pivot point would signal a loss of near-term bullish momentum and could trigger a test of the Fibonacci floor. The immediate resistance at $847.951 remains the primary hurdle for the uptrend to continue.

Tapestry (TPR) faces a different but equally defined support structure. The immediate support is the Woodie's R1 level at $133.11. This is the first major zone where buying interest could re-emerge. Below that, the 50-day moving average around $130.31 is a key technical floor. A break below this level would confirm the overbought conditions are leading to a meaningful pullback. The stock's recent high of $145.42 is now the ceiling, and with the RSI at 70.077, the path of least resistance is likely down from here.

The setup for PAHC is one of clear vulnerability. The stock is stuck in a range, and its critical support is at $92.62. This is the level that must hold to prevent a breakdown. A break below it opens the door to a deeper slide, with the next potential floors in the $84.39 to $83.26 range. For now, the stock is range-bound, but the risk of a breakdown is the dominant technical threat.

The bottom line is about defining risk. In a choppy market, knowing where to place a stop-loss is as important as knowing where to take profits. MCK and TPR have defined support zones that buyers will defend, but a break below key levels changes the story. PAHC's support is the single most critical level to watch.

Catalysts and What to Watch

The technical setups are clear, but the real test is what happens next. Traders need to watch specific price levels to confirm if the current trends have legs or if a reversal is imminent.

For McKesson (MCK), the immediate catalyst is the $805.901 support level. This is the first major floor. A break below it would invalidate the near-term bullish structure and likely trigger a deeper pullback toward the Fibonacci floor at $785.425. Conversely, a decisive close above the immediate resistance at $847.951 would confirm the breakout and signal the path of least resistance is higher. The stock's current RSI of 53.139 is neutral, so momentum could shift either way based on this key level.

Tapestry (TPR) is facing a similar test at its immediate support. The critical level to watch is the Woodie's R1 level at $133.11. Failure to hold above this zone could trigger a sharp pullback, with the 10-day moving average around $129.35 acting as the next major floor. The stock's overbought RSI at 70.077 and maxed-out stochRSI suggest a correction is overdue. A break above its recent high of $145.42 would be needed to extend the bullish move, but the setup favors a test of support in the near term.

The setup for PAHC is one of clear indecision. The bullish trend is not confirmed until the stock makes a decisive break above $116.38. Until then, the price remains range-bound. The primary risk is a breakdown below the critical support at $92.62. A break below this level would invalidate the current consolidation and open the door to a deeper slide toward the $84.39 support zone. For now, the stock is waiting for a catalyst to break out of its range.

The bottom line is about confirmation. In a market driven by price action, the next few sessions will show whether buyers have enough conviction to push through resistance or if sellers are poised to reclaim key support levels. Watch these levels closely.