WBA closes below its opening price unable to hold early session gains
Walgreens Boots Alliance Inc. (WBA) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, WBA ended the week 3.13% higher at 39.60 after edging lower $0.15 (-0.38%) today on low volume, underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Trading $0.44 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (WBA as at May 22, 2020):
Friday's trading range has been $0.73 (1.84%), that's far below the last trading month's daily average range of $1.39. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WBA.
Two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Doji showed up on Wednesday, WBA lost -0.97% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 40.76 where further buy stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Southern Doji" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Walgreens Boots. Out of 55 times, WBA closed lower 65.45% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 58.18% with an average market move of -0.72%.