RAD - Sharp Rejection at Trendline but Will Likely Retest AgainThe touch at $0.81 shows it is not ready for a breakout quite yet. This reaction was at the long time trendline resistance.
Short term: it did the same thing. I think it's safe to assume it will go back up to retest it again and hopefully get to the 50.
Long-term: Look for a break above $1 after we coil down a bit more.
Riteaid
Rite Aid Wedge Reversal forming and MACD crossoverbuy at the bottom of crossover.
Sell Target: $2.60
RAD Long triangle formed maybe cup and handle as well Triangle formation as well as cup & handle. Support at the bottom of the cup at $1.38 (52 wk low) RAD has been steadily supported by 20 day SMA as of late November. I am currently Long RAD.
Sep 28 Earnings: Rite Aid - Way Oversold, Earnings Will SurpriseThe company's share price has been under severe pressure since the deal with Walgreens $WBA has fallen through and low pharmacy reimbursement rates.
Rite Aid's organic growth remains impressive, posting double digit sales growth in 2016. Earnings should get a boost from aggressive cost cutting measures.
I believe the company's share price is way oversold and earnings revisions should prove fruitful in the next 6 months.
I'm initiating the company with a $3.50 PT for the post-earnings move and upward of $4.00 heading into 2018.
