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Nearest Resistance: $35.50
Nearest Support: $34
Catalyst: Pharmacy Network Deal
Walgreen(WAG) is rallying today too, up more than 10% as I write thanks to a pharmacy network deal that got penned between the firm and
Express Scripts(ESRX). The two companies had been feuding for the last seven months, unable to agree on pricing deals to let ESRX customers fill their prescriptions at WAG retail locations. The standoff was worse for Walgreen than it was for ESRX, so it's understandable that buyers are piling back into shares on the news.
Walgreen gapped up hard this morning, something that makes trading this stock a whole lot trickier. Right now, WAG has weak support at $34 and a stronger resistance level at $35.50 -- not an ideal situation. That said, the downtrend that WAG has been stuck in since late April is definitively broken, and that bodes well for investors even if WAG gives back a few points later in the week.
I also featured Walgreen last month in "
7 Dividend Stocks That Want to Pay You More Cash."