Results Tuesday from Walgreen Boots Alliance (WBA) showed the company stumbled this past quarter. But the WBA chart had been reflecting some heavy distribution for months now, so this news really comes as no surprise.
I had to go back to 2014 to find the last time Walgreens was at the current $55 level. That is nasty, and for a Dow Jones Industrial Average component, too.
The volume Tuesday will be off the charts, well more than we saw on Dec. 21 (interim bottom).
Moving Average Convergence Divergence (MACD) is now on a sell signal and the stock is in rare territory, below the bottom Bollinger band. It may stall here or take a small leg lower, but the $50 level is likely to hold firm.
The cloud has been red since January, also a sign of negativity. This stock is an avoid here for now based on the charts, until it recovers back up to the gap point.