Walgreens Boots Alliance, Inc. (NASDAQ:WBA) fourth-quarter report – Investors Cautious

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) fourth-quarter report – Investors Cautious

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) fourth-quarter report – Investors Cautious

Investors are cautious heading into Walgreens Boots Alliance’s fourth-quarter report, due out on Thursday morning. Shares are trailing the broader market so far this year as Wall Street tries to balance the prospects for healthy sales and profit growth against risks of disrupting competition in the pharmacy industry.

Walgreens’ management team has placed itself firmly on the optimistic side of that equation, having recently announced an aggressive stock repurchase program whose results CEO Stefano Pessina said “demonstrate our confidence in future business performance and…our focus on driving long-term shareholder value.”

Pessina and his team said in late June that fiscal 2018 earnings should land between $5.90 per share and $6.05 per share. But investors will be more focused on Walgreens’ outlook for the new fiscal year, and whether it implies a return to comparable-store sales growth at its pharmacy and retailing divisions. 

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 69.90.

The projected upper bound is: 74.78.

The projected lower bound is: 70.43.

The projected closing price is: 72.61.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 25 white candles and 24 black candles for a net of 1 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 51.1501. This is not an overbought or oversold reading. The last signal was a sell 8 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 57.37. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 5 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 1. This is not a topping or bottoming area. The last signal was a sell 1 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 0 period(s) ago.

Rex Takasugi – TD Profile

WALGREEN BOOTS closed down -0.830 at 72.510. Volume was 18% below average (neutral) and Bollinger Bands were 2% narrower than normal.

Open High Low Close Volume___
73.090 73.470 72.140 72.510 5,663,537

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 72.97 69.68 68.16
Volatility: 18 20 32
Volume: 4,621,702 5,249,274 6,074,942

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

WALGREEN BOOTS is currently 6.4% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into WBA.O (mildly bullish). Our trend forecasting oscillators are currently bullish on WBA.O and have had this outlook for the last 16 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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