Walgreen, Reversal Soon?

Published on Thursday, 27 September 2012 04:54 Written by TradersHuddle Wire

New York, September 27th (TradersHuddle.com) - Shares of Walgreen Company (NYSE:WAG) ended the trading session lower by $0.2 or -0.54% 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 determined by calculated support defined at $28.53 and by the resistance level at $36.85, which should be used by traders planning their next move.

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