Walgreens Boots Alliance (WBA) has been on a tear for nearly two weeks. After successfully retesting its January low, WBA began to rebound on Feb. 6. Thursday after seven straight higher lows, the stock moved past the January peak with the help of a big uptick in volume. With a solid bottom in place and impressive momentum in place, WBA is setting up well for a run back up to the 2016 peak.

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WBA's retreat from its 2016 high, set back on Dec. 13, dropped the stock back down to its flat-lining 200-day moving average. The action became quite volatile as the 200-day came back into play, but this key level held in fairly well. After dipping below the 200-day earlier this month, the stock looked very vulnerable, but support near the January low was able to minimize the damage. The impressive rebound that followed has been orderly, with the help of a steady flow of buyers. This bullish action has left behind layers of support.

In the near term, WBA investors should consider the stock a low-risk buy on weakness. The stock has a very strong support zone in place, stretching from the $85.25 area down to $83.50. The lower band of this support zone includes last week's high as well as the 50-day moving average. On the upside, a logical upside target is the 2016 high near $88.00.

Long WBA

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