Walgreen Co. (NYSE:WAG) with its nearly 7000 drugstores and specialty pharmacies has a firm grip on this industry.  Fundamentally speaking the company is keeping up its sales momentum despite the economic slowdown.

The weekly chart looking back to 2007 shows the uptrend off the bottom in 2009 is still very much in place although support at the lower uptrend line doesn’t come into play until the $31 to $32 area.


The daily chart shows a key support level around $33.50, which Walgreen Co. (NYSE:WAG) again found support at in August and the stochastics look to have further room to the upside.  However, note the looming gap right below that level, which works down to $30.  Should the stock meaningfully break below $33.50 on a daily closing basis I would expect the $30 level to act as a magnet.


On the close-up daily chart there is the obvious downtrend line right here right now. A solid daily close above $36.30 may offer a decent entry point to the long side.  Stops could be set around $33.70 with a profit target around $41.

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