Walgreen Close to Resistance

Published on Thursday, 22 July 2010 18:36 Written by Christopher Lynn

New York, July 22nd (TradersHuddle.com) - Shares of Walgreen Company (NYSE:WAG) are trading very close to calculated resistance at $29.96 with the current price action closing at just $29.41 placing the stock near levels that make it difficult to buy.

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 current calculated support defined at $26.26 and by the resistance level at $29.96, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Walgreen, as the stock is well above support, however, as the stock pulls back towards $26.26 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $29.96 then traders will get an opportunity to enter Walgreen stock by establishing a position as the stock moves to a higher range.