so you want to know what the deal is with our ad rite-aid what's going on how
much potential does it have is it a possible swing trade is it a possible
time to get in long or is it a possible short I'll break it down in this video
so breaking down the chart here on our ad you can see this morning at 11
o'clock it had some news came out that possibly the Walgreens and our ID Rite
Aid we're going to get this deal done it's been bouncing around for the last
couple months or a year or so really on the idea of getting getting bought out
by Walgreens also had some trouble because people were saying that the deal
was going to happen so looking at the charts at your 5 minute chart you can
see so jumped up from that 3 10 there to levitate him big spike in volume and
move there jumping up here to the 423 after-hours so big move there up almost
a dollar 10 there today up 30% on the day looking at a 5-minute chart here you
can see some of the resistance support areas had a big move jumps up here above
$4 and then pulled back for you hard you can see had some news came out that the
buyout might not actually get done with the news that the Commissioner of the
FTC or something was going to file a lawsuit to stop the merger and somebody
put that out there at 3:22 and it crashed down I'll show you the exact
article you see it's pretty crazy at 3:22 and talks about how the deal might
not get done the computers crashed this down right there it crashed down from
416 high you can see had a nice steady trend for 16 and it crashed all way down
here 375 so basically what happened is the computer started selling the
stop-loss started getting triggered and it started crashing hard there were no
buyers and it crashed all the way down here to that 376 area and then rallied
back up all the way to new high of day they are above that 420 area after-hours
so pretty crazy move it just shows how volatility stocks didn't get really with
the computers and the algorithms trading off the news here are ad jumping up
there you can see the 5 min chart nice move all day over overall moving higher
all the way up into the clothes there after hours looking at the daily chart
here you can see our ID jumping up from that 310 308 area this morning up to
that resistance there the 420 areas previously got stopped out there a
couple times back in May couldn't get above this 420 area
then before then 480 was kind of resistance so if this deal does happen
the idea of this deal is that Walgreens would buy our ad out at the 657 dollar
area that's kind of their price target I think to buy it so you can see here it
got some resistance there at the six dollar areas there's still a lot of
upside here on this possible move if the news comes out - this deal is happening
and it wants to move higher we can see a move up here to the seven dollar area
from this forward all area right now so still a lot of potential here on this
move it's up 30% on the day and expected in this one to possibly run up even
higher tomorrow kind of the areas that I would look to get in at you know looking
to get into the four dollar area if it possibly dips really hard it opened
tomorrow for some reason and some news comes out against it again it might dip
down here to the 380 area but I think overall as long as the news isn't like
really terrible that they're totally stopping any possible buyout I can see
this one moving higher throughout the day tomorrow and that's kind of a goal I
kind of see this one going at that six dollar area you can see for dollar area
410 being support now after hours and then getting up here to this 423 so I'd
really like to get in above the 420 area if we get up above that 450 area be nice
kind of entry to get in there for a possible two dollar move up to that 650
area would be looking to swing this one in my larger account getting in there
above 450 for that possible $2 move up to that 650 price target for the buyout
or even in six dollar area for a dollar 50 move on this one so that's kind of my
game plan on our ad you guys can trade it however you want look to maybe get in
tomorrow on a dip if it wants to dip or look again in above this 420 area being
resistance from earlier back in May having that resistance there at the 428
430 area so if it clears above that 434 20 area it'll be nice and smooth sailing
up to the price $5 area from the $5 area possibly get that move to $6 so it
really depends tomorrow on what happens with the news if the news is looking
good to see this moving higher I think the deadline for the sec is july 7 so
july 7th will be kind of the determining factor if it doesn't get up above that
six dollar area before july 7th for the possible buyout when the news hits that
could kind of jump on that day it'll happen fast if the news does come out
this is getting bought out it'll probably get halted in the morning and
jump up once the news breaks this could actually jump up tomorrow morning to
that 650 here he just really depends on what happens with the whole lawsuit in
fcc it sounds like it's going to happen but also there's a chance that they
could stop it stopping Walgreens and Rite Aid from
merging the downside on this you're probably looking at a three dollar you
know three dollar area support kind of downside so maybe you know losing a
dollar for possible $2 move here so the the risk reward is looking pretty good
obviously you get in on this kind of keeping a tight stop for a while and
then kind of watching that for dollar area if it starts crashing time to you
know kind of get out of it and not you don't wanna get caught in a big crash if
it wants to crash back down if it doesn't have the volume if it doesn't
have the momentum tomorrow possibly getting out of our ad if it doesn't look
good if the overall markets just not like in the news or some some more
bearish articles come out it could be a possible good short from this for dollar
area back down a three dollar area you can see how to low here so far you know
290 area kind of low so I think if this deal does get turned down if it isn't
working out if the FEC comes out to say this deal is not going to happen then we
can see a nice move all the way back down to that 250 area maybe even lower
if it really gets crazy and starts crashing and people aren't happy about
the news this could be a really nice short so kind of two different ways to
play this you're going to play the news here if the news is bad this is going to
start crashing quickly if the news is good is it's going to skyrocket up to
that 657 dollar area so you got to kind of just figure out where you want to get
in at and kind of watch them into tomorrow watch the volume at open look
pre market see what's happening and kind of keeping an eye on the news if the
news does come out this week it'll probably happen on around Thursday
Walgreens is reporting results on Thursday so possible news there on
Thursday saying that they're buying out Rite Aid so keep an eye on Thursday may
be getting in tomorrow kind of riding up the possible rumor into Thursday and
then selling the news on Thursday or selling before then on a possible move
higher to a $6 area people thinking that it's going to get bought out so trying
to get it up to that six dollar area it really depends on what the market makers
want to do here if they foresee a buyout happening they're going to try to get
this price up there to that buyout area before it gets too crazy and control the
stock so we'll see what happens here keep an eye on our ad
you