Wallgreens Boots Alliance (WBA) is rallying today but let's stand back a little and get some perspective on how prices have behaved since early December and where they might be heading in the weeks and months ahead.
In this daily bar chart of WBA, below, we can see that prices rallied up to an early December peak. Prices skidded lower into year-end but a subsequent bounce was only two months long. Fresh declines started in early March and lasted to the end of May.
Prices have traded below the declining 50-day moving average line until this month but the slope of the line has not turned positive yet.
The daily On-Balance-Volume (OBV) line has been in a downtrend from early December telling us that sellers of WBA have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator has finally made it back to the zero line so we could see a buy signal soon.
In this weekly bar chart of WBA, below, we can see that weak prices have a long history with this stock. Prices are below the declining 40-week moving average line.
The weekly OBV line is bearish and the MACD oscillator is poised for a possible cover shorts buy signal.
In this Point and Figure chart of WBA, below, we can see a possible upside price target of $60 - not all that far above the market.
Bottom line strategy: WBA is showing some "life" today, however, I feel more consolidation (read sideways movement) and maybe a retest of the late May low is needed before WBA can mount a sustained move to the upside.