We last looked at the charts of Walgreens Boots Alliance (WBA) on March 5 writing that "...prices have been correcting. More weakness lies ahead."
My pan of WBA could not have been timed any poorer as prices began a rally the next day. WBA has surged approximately $10 in a short span of time, so let's check out the charts again.
In the daily Japanese candlestick chart of WBA, below, we can see that prices held the rising 50-day moving average line earlier this month. The On-Balance-Volume (OBV) line has turned upward but has not yet broken above the highs of January and February.
The Moving Average Convergence Divergence (MACD) oscillator has turned upward from just above the zero line to a fresh outright buy signal.
In the weekly candlestick chart of WBA, below, we see improvement from our last visit. Prices have made a new high for the move up. The 40-week moving average line is still bullish and the weekly OBV line has improved this month but has not yet made a new high like prices have.
The MACD oscillator narrowed in February but is bullish now.
In this daily Point and Figure chart of WBA, below, we can see an upside price target in the $74 area.
Bottom-line strategy: I hate chasing a stock but it looks like I need to get with the program. Aggressive traders could buy a one or two-day shallow dip on WBA and risk a close below $52. The $74 area is the price target.
