RAD (Rite Aid) AnalysisIn this analysis I am suggesting that the downward channel that has formed will break down
This breakdown may end at the dotted black line under the channel
The green rectangles are historical points of support, currently price is very close to this level
I think it will go lower, briefly.
Rite_aid
RiteAid is about to explode Pretty self explanatory, strong reaction to the upside every time it touched yellow trend line. looks like it is setting up to do that within this month or the next.
Rite Aid: 3 Drives Pattern & Harmonic PullbacksThe last time I looked at this stock I had a bullish Bat Pattern on my radar, which resulted in a move back up to previous structure before continuing short. That movement down ended up being the 3rd drive in a bullish 3 Drives pattern (in yellow) and what I would expect is a minimal move back up to previous structure (orange arrows).
Typically when traders look at harmonic moves they only look at the extensions and not the retracements like in a normal AB=CD pattern. But when the market is moving harmonically it will often give us pullbacks that are equal moves to the previous pull backs. In this example a 3rd equal pullback would place us exactly at the previous structure level providing a great exit place for short term traders.
I don't follow the stock market as much as I used to so I'm not up to date on Rite Aid's fundamentals but I do know that it recently beat earnings projections, but also lowered it's earnings guidance for the second time this year. Regardless I'm still bullish this stock both as an investor and trader and this looks as good as a point as ever to enter.
Rite Aid's PullbackRite Aid and I have a long history going back to a buy when it was well less than a dollar. We've recently seen a steady bullish move until the recent news that competitor Walgreen Company was looking to buy the remaining 55% of Alliance Books putting them into international markets for the first time which would potentially allow them to undercut Rite Aid.
For those looking to hop on the bullish trend this pullback into previous structure seems like the right place to do so. Add that to fact that the symbol has also completed a bat pattern in that same area.
As a trader I strictly follow the technicals. "Trade What You See" However when I put on my investors hat, I like to create a confirmation bias based on the bigger bigger and then use the technicals to gauge my entries and exits.
