WBA slides to lowest close since September 4, 2019
Walgreens Boots Alliance Inc. (WBA) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving lower for the 7th day in a row, WBA ended the week -4.36% lower at 52.04 after losing $1.26 (-2.36%) today, notably underperforming the Nasdaq 100 (-0.82%). Today's close at 52.04 marks the lowest recorded closing price since September 4, 2019. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 52.81, the share confirmed its breakout through the previous session low after trading up to $0.92 below it intraday.
Daily Candlestick Chart (WBA as at Jan 24, 2020):
Friday's trading range has been $1.44 (2.7%), that's far above the last trading month's daily average range of $0.91. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently 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 53.17 (now R1), which is likely to act as resistance going forward. The last time this happened on January 9th, WBA lost -0.84% on the following trading day.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Walgreens Boots. Out of 527 times, WBA closed higher 55.03% 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 55.79% with an average market move of 0.50%.