close icon

Walgreens Stock Dips Below $45 as KKR Deal Stalls

We last wrote about Walgreens stock on November 11th, 2019. Shares were hovering around $62 after news that KKR’s was willing to take the company private. It was going to be the largest leveraged buyout in history.

We, on the other hand, were more interested in what was going to happen with the stock in the absence of a deal. So, we turned to Elliott Wave analysis in our search for an answer. The chart below, published almost four months ago, shows that KKR really was the bulls’ final hope.

Walgreens stock ready to fall if KKR deal collapses

Walgreens’ 4-hour chart revealed a textbook 5-3 wave cycle. There was a five-wave impulse between $86.31 and $49.03, followed by a simple a-b-c zigzag up to $64.50. This pattern meant that unless KKR managed to complete the takeover, pure market forces were going to drag WBA below $50 again.

Unfortunately for the bulls, it soon became evident that financing the deal would be problematic even for KKR. The market quickly lost confidence and Walgreens stock started sliding again.

Walgreens stock dips below $45 as KKR deal seems unlikely

The price fell to $44.61 last week, down 28% since November 11th. In that case, an Elliott Wave pattern proved more reliable than the third biggest private equity company in the world.

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:

Intel ‘s Troubles Fit in its Elliott Wave Correction

2020 is shaping up as a year to forget for Intel shareholders. The stock is down over 20% year-to-date. First, the coronavirus selloff caused a 35% plunge down to less than $44 a share. And just when it seemed INTC was recovering, the company announced it will delay its 7nm products until late 2022 or…

Read More »

Expedia Stock can Surge as Travel Returns

The coronavirus pandemic hit no other sector harder than travel. Lockdowns took a heavy toll on airlines, hotels and even rental car services as people postponed vacations and business trips were cancelled. Even asset-light companies like Booking and Expedia saw their stock prices plunging. Expedia, which was down 25% from its all-time high even before…

Read More »

Plus500 Confirms Uptrend, but Correction is Likely

Based in Haifa, Israel, Plus500 (LSE:PLUS) operates a leading CFD trading platform. The company is part of the FTSE 250 index and conducts most of its business in Europe and Australia. The new ESMA regulations which came in effect in August 2018 severely impacted the CFD trading industry. As a result, Plus500 stock fell from…

Read More »

Moody’s, a Buffett Darling, Trading in Late Fifth Wave

Moody’s Corp. has been a long-time holding in the Berkshire Hathaway portfolio. It is also the seventh biggest position in it as of the end of March 2020. The company has a strong competitive advantage, it is highly profitable and growing. No wonder Warren Buffett likes it so much. The stock did decline sharply in…

Read More »

Dollar General Stock Bulls are Looking for Trouble

As a general merchandise discount retailer, Dollar General was among the handful of businesses that actually benefited from the pandemic. People piled on necessities preparing for what looked like the end of the world for a while. As a result, sales at Dollar General surged in the midst of the crisis. While its stock price…

Read More »

Veeva Systems Stock Trades in Bubble Territory

It is true that the Fed’s recently re-adopted zero rate policy and stimulus are distorting financial markets. Interest rates are like gravity to financial assets. The lower the rate, the higher asset prices go and vice versa. As a result, stocks in general tend to ignore the economic reality right now. Among the companies trading…

Read More »

PNC Financial Completes Bullish Elliott Wave Cycle

Economic crises have always been especially tough on financial companies. Usually, when the general market is falling, financial stocks are crashing even harder. PNC Financial for example, lost 81.6% in the 2008-9 recession, while the S&P 500 fell by “just” 58%. PNC Financial stock suffered more than the general market during the recent coronavirus selloff,…

Read More »

More analyses