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| 4/20/99 Walgreen (WAG)
Points to watch: After falling below its 200
day moving average (25.99) on Monday for the first time in 2 years, Walgreen has tested
and held important support levels at 23.25-24.5 this week. The stock tested
and held long term support at 23.25 (the 38% retracement of the 8/95-2/99 rally)
yesterday. The stock closed Tuesday even with Gann angle support at 24.5. This
Support has been successfully tested 4 times (4/98, 5/98, 9/98, 10/98) since late 1997.
The stock will likely attempt a rally after its recent sharp decline, but the 200
day moving average at 25.99 now provides strong resistance. Major technical
indicators remain decidedly negative: daily OBV turned down on 12/31 and daily MACD gave a
sell signal on 3/17. A short term rally attempt is possible, but the trend
remains down and any break below the 23.25-24.5 level would be a strong sell signal.
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