My near- and intermediate-term pattern and momentum work indicate that Walgreen Co. (WAG) ended a significant correction at its February 5 low at 33.00 -- and a retest of that low was satisfied last week at 33.44. The upmove off of last week's low into Monday's closing high at 34.17 sets up a double bottom corrective low in WAG which should propel prices to test key resistance between 35.30 and 36.10. If my work is correct, and WAG has ended a significant corrective period within a large bull market period that began at the October '08 to March '09 lows (21.28/39), then the price structure should waste little time before heading sharply higher in a hurry.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.