WBA unable to break through key resistance level
Walgreens Boots Alliance Inc. (WBA) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, WBA ended Wednesday at 36.28 surging $1.01 (2.86%), significantly outperforming the Nasdaq 100 (-1.67%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on August 10th, WBA actually lost -2.36% on the following trading day. Closing above Tuesday's high at 35.70, the share confirmed its breakout through the previous session high after trading up to $1.19 above it intraday.
Daily Candlestick Chart (WBA as at Sep 16, 2020):
Wednesday's trading range has been $1.67 (4.72%), that's far above the last trading month's daily average range of $1.02. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WBA.
One bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 36.50 (R1), Walgreens Boots closed below it after spiking up to 36.89 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Walgreens Boots. Out of 420 times, WBA closed lower 56.67% 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 52.86% with an average market move of -0.30%.