This Lesser-Known Stock Has Moved 35% Since My Last Update, Here's What I'm Waiting For Next

This Lesser-Known Stock Has Moved 35% Since My Last Update, Here's What I'm Waiting For Next

So far, 2022 has been challenging, with the S&P 500 declining 25% while tech stocks have been tanking. 

But here's a news flash for you — this is part and parcel of an investor's life. It has happened in the past and will happen again many times in the future. 

The sooner you become thick-skinned to it and learn how to protect your portfolio, the better, as opposed to getting caught up in the noise and assuming the market has a personal vendetta against you. 

And if you build the skill of finding stocks that outperform the market, even in correction periods such as 2022 has been to date, your portfolio will perform all the better. 

McKesson Corporation MCK is a perfect example. 

I first highlighted this stock in my article on February 4th. Following that post, the price rallied by 28% whilst the indices tanked. From May 11th to this week, the price traded inside a consolidation. 

Below is the daily timeframe.

As the saying goes, after every move, the market consolidates, and as we are in the summer months, it is normal for stocks to move sideways. Volume tends to dry up with traders/investors going on holiday. 

As we approach the autumn months, we expect to see a breakout and, more often than not, in the direction of the trend prior to the consolidation.

Some stocks break out earlier than others, such as MCK. 

There was a 5.6% correction earlier in the month in the build-up to earnings. Since then, the price has rallied by 9%, taking the price to new all-time highs.

Also Read: This Oil Stock Has A Better 1-Year Return Than Tesla, Ford, Nvidia, Microsoft, Amazon, Disney, Apple And Bitcoin 

I have been holding this stock since the start of the year. 

I am now waiting for further confirmation of the bull trend to avoid a fake breakout, which is common after a lengthy sideways market and the time of the year. 

If the breakout holds, I will add more positions to my portfolio. I'm practicing patience for now until I get the correct setup. 

I won't be surprised if MCK finds the momentum to hit $500 by the end of the year. 

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