Walgreens Boots Alliance Inc. - (WBA) - January 28, 2021
US drugstore chain Walgreens Boots has jumped up out of the red zone into the Yellow Neutral Zone of the SIA S&P 100 index report, suggesting a rotation into defensive names may be starting. The shares climbed 14 spots yesterday to 41st place and they are up 51 places in the last month.
Walgreens Boots (WBA) shares have turned around dramatically since the start of 2021. A two-year downtrend bottomed out last fall and the shares actually spent most of 2020 stabilizing in the $35.00 to $45.00 range. The shares snapped a long-term downtrend line in October and this month they completed their bottoming phase with a breakout over $45.00 which completed a bullish Saucer Bottom and Ascending Triangle base pattern breakout. The shares have since established their $45.00 breakout point as new support and this week, they have started to accelerate upward with a breakout over the $50.00 round number. Measured moves and previous failures suggest initial upside resistance may appear near $55.00 and then $60.00.
A major breakout is underway in Walgreens Boots (WBA) shares. After a long-term downtrend bottomed out back in October, the shares spent the last part of 2020 base building. This month, a new recovery trend has started in earnest with the shares completing a bullish Triple Top pattern and snapping a downtrend line with a breakout over $43.90. Since then, the shares have continued to climb and yesterday they regained the $50.00 round number level.
Currently the shares are bumping up against a previous column high near $51.45 where a breakout would confirm continuing accumulation. Next potential upside resistance tests on trend appear near $56.80 based on a vertical count, a previous column high near $60.30 and then $69.25 based on a horizontal count. Initial support appears near $46.60 based on a 3-box reversal.
With a bullish SMAX score of 9, WBA is exhibiting near-term strength against the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.