After a sharp rise from $58.39 to $97.30 (A-B), Walgreen Boots Alliance Inc. declined below a falling trend-line (dashed line) to ±$75 where it found support (shaded area). The rise above the top of this trend-line signalled renewed investor interest, a breakout and the start of a new up-leg (C). The stock then pulled back toward its 40-week moving average (40wMA – D) and now appears ready to resume the up-trend. Behaviour indicators including the 40wMA and the rising trend-line (solid line) confirm the positive status. Only a decline below $81 to $82 would be negative. Point & Figure measurements provide targets of $99 and $109. Higher targets are visible.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
Monica Rizk
Ron Meisels