Walgreens Rallies Toward Resistance: Here's How To Play The Post-Earnings Move

Walgreens Boots Alliance Inc. WBA shares traded higher Thursday after the company announced better-than-expected fourth-quarter financial results.

Walgreens reported quarterly earnings of $1.17 per share, beating the analyst estimate of $1.02. The company reported quarterly revenue of $34.3 billion, beating the analyst estimate of $33.3 billion.

Walgreens closed up 7.43% at $50.77 on Thursday.

Walgreens Daily Chart Analysis

• Shares are pushing higher toward resistance in what technical traders call a sideways channel.
• The $56 price level is an area the stock has found resistance in the past, and may hold as resistance again in the future. The $45 level is where the stock found support today, as well as in the past and may again in the future.
• The stock crossed above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock has been turning bullish.
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) saw a big jump Thursday and now sits at 64. This shows after the earnings announcement the stock saw many more buyers entering into the stock and an increase in the overall buying pressure.

See Related: Why Walgreens Shares Are Rising Today

What’s Next For Walgreens?

Bullish traders are looking for the stock to form higher lows and continue to push higher in the sideways channel. Bulls would then like to see the stock break above the resistance level and consolidate above it. This could allow for more bullish moves in the future to happen.

Bearish traders are looking to see the stock cool off and fall back toward support. Bears would then like to see the stock fall below the potential $45 support, as well as the moving averages for a possible change in sentiment.

Photo by Sachina Hobo on Unsplash