Updated with comments from Jim Cramer.
NEW YORK (TheStreet) -- Walgreens Boots Alliance (WBA) gained just over 2.5% on Thursday, making it one of the top 20 gainers in the S&P 500 (SPY) for the session.
Volume was unimpressive, but the price action was quite bullish. Walgreens moved past multi-week highs near its May peak, effectively ending a seven-week consolidation with an upside breakout.
"It was shocking to me that Walgreens had fallen below levels that it stood at after that amazing last quarter," said TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio. "Now it is coming back, and I think it can keep propelling higher."
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On April 10, a week after ending its powerful 55% bull run off the October lows, Walgreens began a healthy, yet overdue, pullback. The stock retraced a third of its 2015 range when it bottomed near $82.50 as the month came to a close. The stock moved sideways from here in a tight, low-volume consolidation while successfully working off the overbought moving average convergence/divergence reading that it hit in late March.
This month, Walgreens retested the lower band of the pattern, putting in three straight monthly lows near this very solid support zone. Shares lifted a bit during the last week and a half, but were still well within the confines of the sideways range. This pattern changed dramatically on Thursday.