WBA breaks below Wednesday's low
Walgreens Boots Alliance Inc. (WBA) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, WBA ended Thursday at 49.29 losing $1.12 (-2.22%) on high volume, significantly underperforming the Nasdaq 100 (-0.07%). Today's close at 49.29 marks the lowest recorded closing price since September 3, 2013. The bears were in full control today, moving the market lower throughout the whole session. Closing below Wednesday's low at 50.36, the stock confirmed its breakout through the prior session low after trading up to $1.24 below it intraday.
Daily Candlestick Chart (WBA as at Aug 15, 2019):
Thursday's trading range has been $1.69 (3.33%), that's above the last trading month's daily average range of $1.31. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WBA.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 49.31 (now R1), which is likely to act as resistance going forward.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 53.36.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week Low" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Walgreens Boots. Out of 49 times, WBA closed higher 57.14% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 65.31% with an average market move of 1.89%.