The technical picture of the Walgreens Boots Alliance stock (NASDAQ: WBA) on our daily chart shows that after finding support near the 45.09 hurdle on July 19th, the share price started rising again and is now trading above a short-term tentative upside support line taken from the low of the same day. Although we might see a further move higher in the near future, let’s not forget that this move could be seen as a corrective one, as WBA is still trading well below a medium-term tentative downside line drawn from the high of April 6th.
Even if we see a slight correction lower, if the aforementioned upside line continues to hold, we might see another upmove. More buyers could join in if the price jumps above last week’s high, at 90.04, as this may open the way towards the 51.70 zone, marked by the low of June 28th. If the buying doesn’t stop there, WBA could end up testing the high of June 29th, at 53.02, or the previously discussed downside line, which might provide additional support.
Although the RSI and the MACD are a bit on the flat side, the RSI is still above 50 and the MACD is now above zero, and also well above its trigger line. The two oscillators show positive price momentum, which supports the scenario mentioned above.
Alternatively, if the previously mentioned upside line gets broken and the stock also fall below the 46.27 hurdle, marked by the current lowest point of August, that may keep new buyers away from entering for a while. WBA may travel to the 45.09 hurdle, marked by the lowest point of July, where a temporary hold-up could occur. That said, if there are still no new buyers around that price, the stock might drift further south, potentially aiming for the 43.66 level, marked by the highest point of December 2020.
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