Nearest Resistance: $5.50
Nearest Support: $5
Catalyst: Q3 Earnings
Shares of retail drugstore chain Rite Aid (RAD) are off more than 9% this afternoon, following the firm's third-quarter earnings release this morning. RAD earned 4 cents a share for the quarter, but it estimated that the best-case scenario for next quarter's earnings would be the bottom of analysts' forecasts. That's what spurred the selloff.From a technical standpoint, today's big gap down is a big problem for shareholders. The move pushed shares through previous support at $5.50, bringing RAD down for a test of a much more significant level at $5. If this drugstore can't catch a bid at $5, look out below.
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