McKesson Corp. beat and raised on October 31st. Volume on the gap up was spectacular. For the last two weeks it has consolidated,Â and has been strong enough to neverÂ pierce the gap. This isÂ a very bullish chart, and makes for an easyÂ “set it and forget it” type trade.
Although the stochastics are overbought, the strength of the intial move suggests it may stay overbought for some time, similar toÂ March, April, and May.
RSI(2) is also close to overbought, but it too may stay overbought for some time.
Healthcare has been strong on a relative basis. MCK is setting up for a possible leadership position within the wholesaleÂ drug and services sector.