McKesson Surges 6.36% to $741.31 on Bullish Technical Breakout

McKesson (MCK) surged 6.36% in the most recent session, closing at $741.31 on substantial volume of 1.14 million shares. This strong upward move warrants a multi-indicator technical assessment using the provided historical data.
Candlestick Theory
The latest session formed a robust bullish candle, erasing prior consolidation near $690–$700. This pattern suggests a decisive breakout, with the prior congestion zone now acting as immediate support ($690–$700). Resistance is evident near the all-time high of $748.75, tested intraday on 2025-09-23. A confirmed close above $748.75 would signal bullish continuation, while failure might invite profit-taking near current levels.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit a bullish configuration: all three slope upward with price trading above each. The 50-day MA (currently near $695) recently crossed above the 200-day MA, reinforcing a long-term uptrend. Recent price dips toward the 50-day MA ($690 on 2025-09-18) were defended, confirming its role as dynamic support. This alignment suggests sustained bullish momentum, though extended deviations from the 50-day MA increase near-term pullback risks.
MACD & KDJ Indicators
MACD shows bullish momentum with the MACD line above the signal line and both trending upward since mid-August. KDJ oscillators align: the %K line (fast) and %D line (slow) are rising in overbought territory (both above 80), reflecting strong short-term momentum. However, KDJ's overextension warrants caution for a potential consolidation phase. Notably, the September pullback saw KDJ dip near oversold levels (below 30) without new price lows, implying underlying strength before the recent surge.
Bollinger Bands
Bands contracted sharply in early September, signaling reduced volatility before the 6.36% breakout. Price now presses against the upper band ($748), confirming bullish momentum. Volatility expansion supports the breakout’s validity, but sustained trading outside the upper band is unsustainable historically, heightening reversal risks. Watch for band divergence: if price consolidates while bands widen, further upside may emerge.
Volume-Price Relationship
The breakout was validated by elevated volume (1.14 million shares vs. 30-day average ~700k), lending credibility to the move. Prior support tests (e.g., 2025-09-19 bounce from $690) saw volume spikes, confirming accumulation. Conversely, the August decline toward $650 featured climactic volume, signaling capitulation before the recovery. Current volume divergence is absent, suggesting institutional participation in the rally.
Relative Strength Index (RSI)
Daily RSI (14-period) reads 72, crossing into overbought territory. While this may precede consolidation, its upward trajectory aligns with the breakout. Importantly, RSI formed a bullish divergence in August: price hit lower lows while RSI held above its prior trough, foreshadowing the current rally. Overbought conditions bear monitoring but do not yet indicate exhaustion given strong momentum.
Fibonacci Retracement
Applying Fibonacci to the March–September uptrend (trough: $652.83 on 2025-04-08; peak: $748.75 on 2025-09-23), key retracement levels emerge. The recent breakout vaulted above the 61.8% level ($715), now converted to support. The 50% retracement ($700) aligns with the prior consolidation zone, reinforcing its significance. Near-term targets include the 78.6% level ($735), breached intraday, and the 100% projection at $770 if bullish momentum persists.
Confluence and Divergences
Confluence is evident: moving averages support the uptrend; volume confirms the breakout; RSI/MACD show bullish momentum; and candlestick patterns reflect buyer dominance. The KDJ’s overbought status presents a minor divergence against Bollinger Band expansion, hinting at near-term consolidation. However, Fibonacci and moving average support near $700–$715 offers a high-probability entry zone for pullbacks.