Yesterday my wife and I made reservations at our nearby Rite Aid ( RAD) for this year's flu vaccine shot. Everything was easy with the online registration. The line moved quickly and the person doing the injections was excellent. The store was new, well organized and of course we picked up some additional purchases before leaving.
Unfortunately our positive experience in this particular store did not translate to stronger-looking charts for RAD. Let's check.
In this daily bar chart of RAD, below, we can see that prices have recently broken down below the May nadir. RAD trades below the declining 50-day moving average line and below the weak and bearish 200-day line.
The On-Balance-Volume (OBV) line has turned lower but is so far above its prior low in May. The Moving Average Convergence Divergence (MACD) oscillator is in a bearish alignment below the zero line.
In this weekly Japanese candlestick chart of RAD, below, we see a bearish picture. Prices are in a longer-term downward trend. The slope of the 40-week moving average line is negative (bearish). The weekly OBV line has turned lower as has the MACD oscillator. With no lower shadows on the recent candles we are likely to see prices move still lower.
In this daily Point and Figure chart of RAD, below, we can see a downside price target in the $1.00 area. Ouch.
In this weekly Point and Figure chart of RAD, below, we have a lower price target in the $0.56 area.
Bottom line strategy: I will likely visit my nearby Rite Aid again but I doubt I would recommend purchase of shares of RAD.