Walgreens Boots Alliance, Inc. (WBA) Technical Analysis 06/10/2017

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) gained 1.48% in yesterday’s session, going up from its prior closing price of $75.83 to $76.95. The price has been moving in both directions for this period, and there has been a -1.6% loss over 10-day period. Trading activity decreased by -0.07 million shares, and in total, 4.52 M shares exchanged hands for about $347.71 million. It should be noted that increasing price and decreasing volume show lack of interest and this is a warning that something has fundamentally changed.

Inside WBA’s Recent Trend

Walgreens Boots Alliance, Inc. (WBA) is the lower part of a horizontal trend on short term, and normally this would pose a good buying opportunity, though a break down through the bottom trend line at $75.84 will give a strong sales signal and a trend shift may be expected. Given the current horizontal trend you can expect Walgreens Boots Alliance with 90% probability for the price to range between $76.17 and $83.20 in this timeframe. Investors sometime notices large volume spikes after a breaking of the horizontal base, and stocks rarely experience a roller coaster ride from the bottom of a trend. Stocks jumping at a middle end of a horizontal base are therefore followed in search of a potential runner.

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 $77.01 and $80.22. A buy signal will be generated if it crosses above any of these levels. Some upbeat technical points have emerged as well, putting a major impact on the future growth of the stock in the next couple of days. Its pivot point low generated buy signal on Wednesday October 04, 2017, which calls for additional surge until the stock forms a new pivot point high. There was a decrease in volume but the price rose. This is usually not interpreted as a good sign as traders widely believe falling volume should see declining stock. Investors should be watching the price action like a hawk in the coming sessions.

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

Walgreens Boots Alliance, Inc. (WBA) recorded volume accumulation so there will probably be a surplus of buyers at $76.79. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $77.52, $81.13 and $82.50.

Accumulated volume is going to prevent the price from rising further at $77.52 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

The number of shares changed hands in the stock is good, indicating the interest and low risk associated with it. In the most recent session, the stock price hovered around $1.27 (1.68%) between intraday high and intraday low. Each day in the past 1 week, the average volatility remained at 1.51%.

Walgreens Boots Alliance is in oversold territory based on Relative Strength Index reading (23). 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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