close icon

Walgreens Stock Confirms Downtrend is Over

Walgreens stock had been declining for over five years between 2015 and 2020. One of the largest pharmaceutical retailers in the world reached an all-time high of $97.30 in August 2015. In late-October 2020, it fell to $33.36, losing almost 66% from the record.

It must have been difficult for Walgreens investors to keep a long-term perspective during those five years. Even the fact that KKR apparently thought WBA was worth $70B didn’t help much.

The past few months, on the other hand, are telling a different story. The company has a new CEO and proved to be a valuable partner in the fight against COVID-19. The market quickly revalued the stock to as high as $56.12 earlier this month. Can the bulls trust the recovery this time around, though?

Elliott Wave chart of Walgreens Stock

The chart above reveals that the rally since the start of November 2020 has a five-wave structure. It is labeled 1-2-3-4-5 and forms a textbook impulse pattern. The five sub-waves of wave 3 are also visible and marked i-ii-iii-iv-v. According to the Elliott Wave theory, impulses point in the direction of the larger trend.

That’s good news for bruised up Walgreens shareholders. It means that once the corresponding three-wave correction in wave (2/B) is over, they can expect more strength in wave (3/C). A drop to roughly $45 makes sense first, but as long as $33.36 holds, the bulls remain in charge with targets above $60.

Similar Elliott Wave setups occur in the Forex, crypto and commodity markets, as well. Our Elliott Wave Video Course can teach you how to uncover them yourself!



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

Rapid7 Doubles As Elliott Wave Setup Bears Fruit

We first wrote about Rapid7 in late-August 2019. The stock was hovering above $55.50, but the structure of the post-2016 uptrend suggested a notable decline was in progress. In March 2020, it fell to $31.34, down 52.5% from its all-time high. A month later, with RPD still below $47, we shared our bullish stance on…

Read More »

PNC Financial – Elliott Wave Analysis Works Yet Again

Earnings at PNC Financial suffered last year along with the entire financial sector. Net income before extraordinary items came in at $2.95B in 2020, down from $5.35 in 2019 for a 45% reduction. In our opinion, amid the biggest crisis since the Great Depression, the fact that PNC and its peers even managed to stay…

Read More »

Betting on 3i Stock a Year Ago Pays Off in Spades

The first time we wrote about 3i Group was in late-October 2019. The stock was hovering around 1100 pence a share following a 1000% gain in the past ten years. Needless to say, few thought a major decline was even possible. Fortunately, Elliott Wave analysis helped us see the bulls cannot be trusted. Five months…

Read More »

Ahead of Hibbett ‘s Unlikely Surge to New Records

Hibbett Sports Inc. is an American sporting goods retailer with more than 1000 stores in over 30 states. We first wrote about the company in the summer of 2017. The stock was trading below $16 a share back then, following a decline from as high as $68.31 in late-2013. At first glance Hibbett looked like…

Read More »

Interpublic on the Verge of Doubling Amid Pandemic

We first wrote about Interpublic in March 2018. The stock had just reached $26 a share, but we thought an Elliott Wave correction can “easily erase about 50% of Interpublic ’s market capitalization.” Two years later, during the coronavirus panic in March 2020, IPG fell to $11.63, down 55% from the 2018 high. Fortunately, the…

Read More »

Expedia Acts As If Travel Restrictions Do Not Exist

We last wrote about Expedia in mid-2020. Countries around the globe had mostly closed their borders, the COVID-19 vaccine was still just a hopeful prospect and the summer travel season was practically ruined. No wonder the stock of Expedia, one of the largest travel booking companies, was down 46% from its 2017 high. Yet, during…

Read More »

The Trade Desk to Exceed $1000, but Not by Much

The first time we wrote about The Trade Desk was in May 2019. The stock was trading above $220 a share and we thought a notable correction can soon be expected. That call was rather premature though, since the bulls added another $100 before giving up. However, by March 2020, TTD was down to $136,…

Read More »

More analyses