Walgreen Expecting Resistance Soon?

Published on Wednesday, 08 February 2012 05:28 Written by TradersHuddle Wire

New York, February 8th (TradersHuddle.com) - Shares of Walgreen Company (NYSE:WAG) closed the trading session at $33.46 near its 50 day moving average currently set at $33.62. Walgreen's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

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.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $33.00 and calculated resistance at $35.35. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by Walgreen shares.

Traders should evaluate their trade if they want to establish a position on Walgreen given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.