Woolworths is the topic for today’s analysis.
Since the beginning of the year we have not seen any major movements, we have been ranging between the 6,800 and 7,600 mark.
Looking at the technicals, the 50 day moving average is below the 200 day moving average signalling a possible continuation of the current trend while the Stochastic RSI is showing an overbought situation signalling a potential retracement. The MACD is showing signs of an uptrend but its a very week signal at that.
There is a good possibility that we are going to keep bouncing between the trading range, thus requiring a strong break-out above or below the support and resistance areas to define a direction.
A break above the 7,600 resistance area could see the price reaching the next resistance area at 8,000. While a break below the support area at 6,800 could see the price at the next major support area at 6,300.
*All information in this article is the author’s opinion and is for educational purposes only. It does not constitute investment advice or a solicitation to buy or sell any financial instrument. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced investors who have sufficient financial means to bear such risk.