WAG - Walgreens

October 18th, 2014, 07:37 PM

October 18th, 2014, 07:37 PM

Walgreen Co. (NYSE: WAG) saw a gigantic purchase this week. A director at the company bought a staggering 1.25 million shares of the stock at prices that ranged from $60.68 to $62.80. The total tab for the huge purchase came to $77.3 million. Now that is very bullish for current shareholders of the giant pharmacy company. Shares closed trading Friday at $60.27.

Read more: Insider Buying at Walgreen (NYSE: WAG), Energy Transfer Equity (NYSE: ETE), Others - 24/7 Wall St. Insider Buying at Walgreen ([AUTOLINK]NYSE[/AUTOLINK]: WAG), Energy Transfer Equity ([AUTOLINK]NYSE[/AUTOLINK]: ETE), Others - 24/7 Wall St.
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October 19th, 2014, 01:32 AM

there was nothing more to read in that link. You quoted basically all of it.

I would not consider this to be generally bullish. Were it not announced 99% of investors would not have known it took place. as shown by looking at this chart

It would be one thing if the purchase was made in one order but there does not appear to be much of change in volume pattern in last week's trading. And one wonder's why said director paid as much as he did for the stock as he/she knows not too much about market timing as he/she could have made the purchases in the $59-$60 and saved him/herself a few million shekels.

the purchase did nothing for the stock when it occurred so it is basically a non-event.

There is a tightening of the Bollies so a major movement is coming soon but that has more to do with the next quarterly report...perhaps the director has a sneak peak at that report but if the stock took off I am sure he/she would be investigated over the purchase.

Right now though the outlook from my charts is neutral at best but more likely mildly bearish. The Slow Sto would be rising if there was investor interest and it is struggling to get past 50 and is currently declining, the MACD is uninspiring and you have the bearish cross of the 50daySMA falling through the 200daySMA late last month and falling further

The BBwidth is at a level where a major stock movement could happen any time now but the price is less than the 20daySMA so if the quarterly report was stunning that would not matter much but if it was less than expectations it could fall .

this P&F chart does not inspire confidence....if it falls below $59.00 the next support would be $55.00 and I think $59.00 support will be tested soon.

WAG - Walgreens

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WAG - Walgreens