The Weekly Chart For Walgreens Confirms The Bearish Picture
Anna Coulling | Jul 27, 2021 01:58AM ET
Walgreens (NASDAQ:WBA) was a stock I last considered back in March this year and at that point, it was trading at $51.78 per share. As I outlined in the post, there were various volume price analysis anomalies which led me to conclude the stock was looking toppy and unlikely to continue with any bullish sentiment in the longer term which has indeed proved to be the case.
In fact, the $52 per share level proved to be significant as it was the price at which bearish sentiment really took hold with the price finally plunging at the start of July with a volatility trigger on the candle and associated with extreme volume and heavy selling. This continued into the following day as the price waterfall developed, taking it down to a low of $45.09 before last week’s minor rally off the extremes of the VPOC histogram to the right of the chart. So where next for this stock?
To answer this question we need to move to the weekly chart, which is revealing, and confirms the strength of the technical price-based resistance at $55.80 which capped the bullish rally and denoted with the red dashed line of the accumulation and distribution indicator.
Below the current price, we have the volume point of control (VPOC) denoted with the yellow dashed line and waiting at $41.60 per share, whilst above is a level of potential price-based support just below $44 per share.
So there are reasons to be cheerful for this stock, but in the short to medium term, it looks set to track lower, and down into the low 40’s before finding some much-needed support.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.