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Today’s chart is of Walgreen Co. (WAG) which operates a network of drugstores in the United States. It provides consumer goods and services, pharmacy, and health and wellness services through drugstores, as well as through mail, and by telephone and online.
Chart of the Day: Walgreen Co. (WAG)
Ticker: Walgreen Co. (WAG)
What I Am Looking At:
- Strong outperformance on a year-over-date basis, +28 percent, and up nearly 16 percent year-to-date
- Critical round number $40 level (significance going back to 2000) has successfully been passed
- Long-term target is the next round number level at $50, which could act as a magnet
- Breakout of ascending triangle on the heels of an upgrade and target raise this morning
- Put open interest is more than double the call open interest for the front three months, which ranks in the 100th percentile of all readings taken over the past year, showing an extreme in pessimism among uptrending price movement
- 10-day buy-to-open put/call ratio stands at 4.07 indicating that option players are buying 4 times as many puts than calls
- Room for further upgrades as 8 out of 16 analysts rate the shares a “hold” or worse
Strategy: Buy on current breakout or wait for a possible backtest of $42, targeting round number level $50