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Possible Bullish Inside Day Candle Pattern Detected for Rite Aid (NYSE:RAD)

By James Quinn

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Rite Aid (NYSE:RAD) based on the price action in the company's shares. Today's price range of $3.46 and $3.61 is within yesterday's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Traders and investors interested in shares of Rite Aid may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

Rite Aid (NYSE:RAD) has potential upside of 95.9% based on a current price of $3.50 and analysts' consensus price target of $6.86. The stock should run into initial resistance at its 200-day moving average (MA) of $7.84 and subsequent resistance at its 50-day MA of $8.03.

Over the past year, Rite Aid has traded in a range of $3.32 to $9.47 and is now at $3.50, 5% above that low. Over the last five market days, the 200-day moving average (MA) has gone down 0.2% while the 50-day MA has remained constant.

Rite Aid Corporation operates a retail drugstore chain in various states and the District of Columbia. The Company's stores sell prescription drugs, as well as other products such as nonprescription medications, health and beauty aids, and cosmetics.

SmarTrend recommended that its subscribers protect gains by selling shares of Rite Aid on January 23rd, 2017 by issuing a Downtrend alert when the shares were trading at $7.17. Since that call, shares of Rite Aid have fallen 52.1%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bullish inside day candle Rite Aid

Ticker(s): RAD