WBA breaks below Thursday's low
Walgreens Boots Alliance Inc. (WBA) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, WBA ended the week -0.73% lower at 52.85 after losing $0.72 (-1.34%) today, significantly underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 53.45, the market confirmed its breakout through the prior session low after trading up to $0.71 below it intraday.
Daily Candlestick Chart (WBA as at Feb 14, 2020):
Friday's trading range has been $1.05 (1.95%), that's slightly above the last trading month's daily average range of $0.94. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for WBA.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
The share closed back below the 20-day moving average at 52.87. When this moving average was crossed below the last time on Tuesday, WBA actually gained 2.79% on the following trading day.
Although the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the eight 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 528 times, WBA closed higher 55.30% 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 55.68% with an average market move of 0.51%.