After a big surge from November to May, Walgreen (WAG) consolidated with an inverse head-and-shoulders pattern. This version of the head-and-shoulders is a bullish continuation pattern. Also notice that the pattern from mid June to September looks like a cup-with-handle. A breakout at 51 would confirm and signal a continuation higher.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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