June 27 Chart of the Day - Walgreens
Walgreens (WBA) announced its quarterly earning before the opening bell today and cut its profit forecast for the year as high inflation decreased sales of consumer healthcare goods and demand for COVID shots and tests. Its shares were down about 8% to $28.60 in pre-market trading Tuesday.
So is this the "bottom?"
We don't predict tops or bottoms rather, we use price action technical analysis to determine levels of interest in both directions because as traders we don't label ourselves bulls or bears.
Peaking at $97.30 in August 2015 (pre-COVID) the company's stock price has steadily decreased even though it experienced a surge when the COVID outbreak started in 2020. But from a technical perspective, that looks like a simple bear Fibonacci retracement whereby the downward trend continued...
Fundamentally, the company didn't paint a rosy picture going forward for the remainder of this year so we wouldn't be surprised to see if price makes it way down to the $22-$24 area (or possibly below) although never a straight shot.
So what's next?
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
Take a look at the charts and let us know what you think.
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