Walgreen Reversal Soon?

Published on Thursday, 29 July 2010 18:15 Written by Christopher Lynn

New York, July 29th (TradersHuddle.com) - Shares of Walgreen Company (NYSE:WAG) ended the trading session lower by $0.6 or -2.07% from its previous close. Walgreen's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Walgreen Company (NYSE:WAG) operates retail drugstores that offer a wide variety of prescription and non-prescription drugs as well as general merchandise. The Company operates stores throughout the United States. the company also offers health services, including primary and acute care, wellness, pharmacy and disease management services.

Walgreen's current stock range is defined by calculated support defined at $26.26 and by the resistance level at $30.26, which should be used by traders planning their trades.

Traders wanting to establish a position in Walgreen stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current Walgreen shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: