Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Walgreens Longer Term Outlook Remains Bearish

By Anna CoullingStock MarketsMay 01, 2019 07:26AM ET
www.investing.com/analysis/walgreens-boots-are-red-200413540
Walgreens Longer Term Outlook Remains Bearish
By Anna Coulling   |  May 01, 2019 07:26AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

WBA Weekly Chart
WBA Weekly Chart

Whilst many US stocks have mirrored the price action on the primary indices over the last few months, falling and then recovering, this has not been the case for Walgreens Boots Alliance (NASDAQ:WBA) which has continued lower under the weight of a bearish technical picture and poor earnings, with a big miss in April adding to an already bearish picture. This fundamental driver is clearly in evidence on the weekly chart for the stock with the widespread down candle on ultra high volume injecting further downside momentum in April, that has continued to weigh heavily as the stock sinks further, and with no signs yet of any market maker buying, the longer term outlook remains very bearish.

What is interesting about the chart is the appearance of the volatility indicator which is unusual on a slow timeframe such as this, and yet as always reveals what to expect following its appearance. The volatility indicator is triggered when price action moves outside the average true range and the expectation is for price action to either consolidate or reverse as a result. The reason for this is simple. Volatility and insider participation go hand in hand and as such, fast moves in any market provide the ideal opportunity to trap trade investors and traders into weak positions on the reversal. And on the weekly chart, we have two examples, the first signalling a reversal, the second consolidation before there is a continuation of the primary bearish trend.

WBA Monthly Chart
WBA Monthly Chart

The pattern for this stock now seems to be set, with minor rallies higher punctuating the move lower, and until we see major accumulation, a move through $50 now seems likely. Indeed the monthly chart is interesting here, with rising volumes and falling prices confirming this sentiment, and with the trend monitor now in transitional phase, and with a low volume node ahead, $45 now seems to be the next possible pause point. Thereafter a return to the volume point of control at $35 longer term may be achieved.

Walgreens Longer Term Outlook Remains Bearish
 

Related Articles

Michael Kramer
NASDAQ Could Fall Another 13% By Michael Kramer - Jan 28, 2022 60

This article was written exclusively for Investing.comThe NASDAQ Composite has fallen sharply to start 2022, down nearly 13%. But don't expect the index to race back to record...

Walgreens Longer Term Outlook Remains Bearish

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email