WBA pushes through key technical resistance level
Walgreens Boots Alliance Inc. (WBA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
WBA finished Thursday at 45.67 surging $4.23 (10.21%), notably outperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 45.45, the market confirmed its breakout through the previous session high after trading up to $0.40 above it intraday.
Daily Candlestick Chart (WBA as at Mar 26, 2020):
Thursday's trading range has been $4.84 (11.6%), that's above the last trading month's daily average range of $3.95. 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 slightly higher than usual for WBA. Prices continued to consolidate within a tight trading range between 41.01 and 45.94 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 18th, WBA actually lost -8.07% on the following trading day.
Buyers managed to take out the key technical resistance level at 43.19 (now S1), which is likely to act as support going forward. The stock ran into sellers again today around 45.85 for the third trading day in a row after having found sellers at 45.45 in the prior session and at 45.94 two days ago.
Though Walgreens Boots is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
With prices trading close to this year's low at 40.52, downside momentum could accelerate should the share break out to new lows for the year.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for Walgreens Boots. Out of 323 times, WBA closed higher 57.28% 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 55.42% with an average market move of 0.78%.