WBA has come within one standard deviation of its historically bearish 120-day moving average
Dow member Walgreens Boots Alliance Inc (NYSE:WBA) is looking to snap a five-day win streak ahead of tomorrow's ex-dividend date. The stock is down down 2.5% at $41.01 at last glance, after news that Walgreens, CVS (CVS), and Walmart (WMT) must pay a combined $650.6 million to two Ohio counties due to damage done by the opioid epidemic. This negative price action could continue, however, as the shares are running into technical trouble.
More specifically, a study from Schaeffer's Senior Quantitative Analyst Rocky White shows that WBA is within one standard deviation of its 120-day moving average for the eighth time in the last three years. After the last seven signals, the equity was lower one month later 71% of the time, averaging a 7.6% loss for that period. A comparable move from the stock's current perch would put the stock back below $38 -- back toward its July 14 one-year low of $36.57.
WBA ranks low on the Schaeffer's Volatility Scorecard (SVS), with a score of just 28 out of 100. In other words, the security has consistently realized lower volatility than its options have priced in, making the stock a potential premium-selling candidate.