TECHNICAL ANALYSIS: Woolies stock breaks out above important resistance levels

Woolworths se logo.
Woolworths se logo.

Woolies has been the leading retail stock in recent months on the JSE, and it’s now gone on to break out above important resistance levels. This is bullish and the stock has two higher price targets.  

WOOLIES (WHL) – Higher targets  

Recommendation: BUY

Current Trend: Short and med-term up.

Strategy: Buy at current levels

Chart Setup: Woolies a broken out above line 1 to confirm a large “cup and handle” pattern. It has two higher targets.

  • Its Stochastic is overbought so it might pull back a bit more in the immediate short-term.

(Daily chart)

Woolies

Strategy Details: Buy at current levels if not in.  

Target: First target (T1) is R63.00, based on its consolidation of the past month. But its larger target is R73.80, based on the large rounding bottom/cup since last December.  

Stop-loss: A close below R55.00 (which is also below line 1). 

  • Colin Abrams is an independent technical analyst. To subscribe to more recommendations by the author, or attend trading courses, please go to www.themarket.co.za

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

ZAR/USD
16.73
(+0.17)
ZAR/GBP
21.29
(+1.01)
ZAR/EUR
19.58
(+0.80)
ZAR/AUD
12.00
(+1.02)
ZAR/JPY
0.16
(+0.57)
Gold
1900.73
(-0.82)
Silver
24.28
(-2.85)
Platinum
865.00
(-2.09)
Brent Crude
42.14
(-3.94)
Palladium
2249.50
(-1.59)
All Share
53333.62
(+0.03)
Top 40
49185.15
(+0.07)
Financial 15
9624.30
(+1.10)
Industrial 25
71871.69
(+1.21)
Resource 10
53039.96
(-1.65)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 1333 votes
It depends on how the funds are used.
73% - 8730 votes
No. We should have gotten the loan elsewhere.
16% - 1924 votes
Vote