WBA closes above its opening price after recovering from early selling pressure
Walgreens Boots Alliance Inc. (WBA) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, WBA ended the month -1.28% lower at 42.39 after edging higher $0.07 (0.17%) today, notably underperforming the Nasdaq 100 (1.96%). Trading up to $0.36 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 27th, WBA actually lost -2.65% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (WBA as at Jun 30, 2020):
Tuesday's trading range has been $0.81 (1.92%), that's far below the last trading month's daily average range of $1.54. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for WBA. Prices continued to consolidate within a tight trading range between 40.72 and 42.68 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 42.64 (R1). After having been unable to move above 42.64 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 42.57.
Although the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the nearby swing high at 42.64 where further buy stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Walgreens Boots. Out of 608 times, WBA closed higher 51.64% 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 55.76% with an average market move of 0.41%.