Finance

Understanding Technical Signals From Walgreens Boots Alliance, Inc. (WBA)

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) fell by -1.33% in Wednesday’s trading session from $69.85 to $68.92 and has now fallen 5 consecutive sessions. The price has fallen in 8 of the last 10 days and is down by -11.81% over the same course of time. There was a decrease in both volume and price. This is usually interpreted as a good sign as traders widely believe falling stock should see declining volume. Traded activity experienced a fall of -4.53 million shares and in total 7.48 M shares exchanged hands for about $515.74 million.

Inside WBA’s Recent Trend

Walgreens Boots Alliance, Inc. (WBA) has broken the falling short-term trend down. At first, a heavy selloff is imminent, but false breaks and sharp decline may occur. However, an additional loss is possible and any progress toward the breaking point ($77.20) will be a new exit point. According to the fan-theory $72.91 is considered to be the new bottom line of the next trend, but it is not the time to say this for sure.

Walgreens Boots Alliance, Inc. Technical Signals



WBA has witnessed its long term and short term MA triggering a sell signal. Many traders watch for long-term averages to cross above short-term averages to signal the beginning of a downtrend. Upon corrections, the price will meet resistance from the averages between $73.20 and $79.08. A buy signal will be generated if it crosses above any of these levels. Its pivot point high generated sell signal on Tuesday September 12, 2017, which calls for additional declines until the stock forms a new pivot point low, as this could be a buying opportunity. The downbeat movement of both volume and price during the recent session is interpreted as a good sign because traders usually believe falling stock should see declining volume.

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) Support And Resistance Levels

There is no support from accumulated volume below today’s level and given the right condition the stock may perform very badly in the next couple of days. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $70.87, $81.13 and $82.50.




Accumulated volume is going to prevent the price from rising further at $70.87 and this action will lead the price to take a temporary pause or stay muted for a few days.

Walgreens Boots Alliance, Inc. (WBA) Risk Assessment

A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $1.23 between high and low, or 1.79%. The average volatility for the past week stood at 3.04%.

Walgreens Boots Alliance is in oversold territory based on Relative Strength Index reading (16). In some cases it takes more time for the trend to shift while the stock is being oversold and the Relative Strength Index keeps moving.

 

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