Today’s Research recommendation is Walgreen’s (WAG), which is trading at a low of $31 today. Let’s get straight to the numbers. Below I will list the Dow Theory interpretation of the price movement of prior periods (which is supposed to assist us with finding the final low in the price) and contrast that with the actual low for the stock.
From the bottom in July of 1994, WAG went from $4.22 to $33.94 in February of 1999. According to Dow’s Theory, the price of WAG was expected to fall from $33.94 to any of the following three levels:
· $24.04
· $14.12
· $4.21
WAG actually bottomed at $22.06 in March of 2000.
From the bottom in March of 2000, WAG went from $22.06 to $45.75 in October of 2000. Dow’s Theory says that the stock should fall to the following levels:
· $37.85
· $29.95
· $22.05
WAG actually stopped falling at $26.90 in February of 2003.
From the bottom in February of 2003, WAG went from $26.90 to $51.60 in September 2006. Dow’s Theory says that the stock should fall to the following levels:
· $43.37
· $35.14
· $26.91
WAG is currently selling at around the $31 level.
Walgreen’s has shown from previous periods that the stock price tends to overshoot the second price level on the downside. The current price movement is no exception. With all the drama that we’re seeing in the stock market I’d assume that the price will go as far as the $26.91 level. However, even at the current price this stock is a bargain and would warrant taking the risk of holding with the potential for a 13% decline in the short run. Good luck on your research of this stock. Touc.
Click on the link to know about Dividend Inc..
From the bottom in July of 1994, WAG went from $4.22 to $33.94 in February of 1999. According to Dow’s Theory, the price of WAG was expected to fall from $33.94 to any of the following three levels:
· $24.04
· $14.12
· $4.21
WAG actually bottomed at $22.06 in March of 2000.
From the bottom in March of 2000, WAG went from $22.06 to $45.75 in October of 2000. Dow’s Theory says that the stock should fall to the following levels:
· $37.85
· $29.95
· $22.05
WAG actually stopped falling at $26.90 in February of 2003.
From the bottom in February of 2003, WAG went from $26.90 to $51.60 in September 2006. Dow’s Theory says that the stock should fall to the following levels:
· $43.37
· $35.14
· $26.91
WAG is currently selling at around the $31 level.
Walgreen’s has shown from previous periods that the stock price tends to overshoot the second price level on the downside. The current price movement is no exception. With all the drama that we’re seeing in the stock market I’d assume that the price will go as far as the $26.91 level. However, even at the current price this stock is a bargain and would warrant taking the risk of holding with the potential for a 13% decline in the short run. Good luck on your research of this stock. Touc.
Click on the link to know about Dividend Inc..
1 comment:
Your research is just what I like to see. It seems to show a progressive trend to the upside in the long run, which can only get better as the clock keeps on tickin.
Thanks again for the info,
Andreas
Post a Comment