Don't Ignore This Chart

Rite Aid (RAD) Continues To Push Against Up Side Resistance

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Rite-Aid (RAD) has a very interesting chart formation this week. Recently the stock surged to long term highs. As it continues to battle against the resistance levels, we can see $8.75 seems to be an important area for the stock. It struggled to push above $8.75 in early April. After spending a week trying to go higher, it rolled over after making new highs. In May, it tried again. In June it has pushed up within a penny of the April highs. after a quick dip down on Friday, Rite-Aid was bought again on Monday and Tuesday. If we look at the top of the chart, the SCTR broke above 75 in December and the stock rallied 20% within 6 weeks. After making higher lows going sideways from February to June, it looks like Rite-Aid is ready to move up through resistance now. 

If there was anything to worry about on the chart it was the high volume on Thursday on a big down candle and that was also a bullish general market day. It is a warning sign that stops just below are important. However, everything including the SCTR showing the stock performing better than 87% of the peer group. Thats pretty important!

Good trading,
Greg Schnell, CMT

Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is also the author of Stock Charts for Dummies (Wiley, 2018). Learn More
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