Traders and investors are reacting to Walgreens Boots Alliance's (WBA) latest quarterly financial highlights that included a $6.5 billion pretax charge recognized in connection with a previously announced opioid litigation settlement.
Let's jump to the charts.
In the daily bar chart of WBA, below, I can see that the shares spent about three or more weeks above the declining 200-day moving average in November and December but that price strength did not last long. WBA is now below the 200-day line and the 50-day moving average line.
The On-Balance-Volume (OBV) line is at a new low for the move down and the Moving Average Convergence Divergence (MACD) oscillator is bearish.
In the weekly Japanese candlestick chart of WBA, below, I see a weakening picture. The shares are in a longer-term decline as they trade below the declining 40-week moving average line.
The weekly OBV line is pointed down. The MACD oscillator is below the zero line and narrowing -- not a good combination.
In this daily Point and Figure chart of WBA, below, I can see that WBA reached a downside price target around $36.
In this weekly Point and Figure chart of WBA, below, I can see an upside price target in the $65 area. Strength above $42.23 is needed to refresh the uptrend.
Bottom-line strategy: WBA shares have rolled over and turned down. A retest of the October low is possible and traders should prepare for it.
