Technicals | Aug 23 2016
By Michael Gable
We have passed the halfway point in reporting season and as usual we have looked for companies that are either exceeding guidance or exceeding consensus targets. In our charting section for this week, we have identified stocks that have reported ahead of market expectations and analysed how they are trading and whether there is an opportunity or not. Today we look at Woodside Petroleum ((WPL)).
The lows earlier this year on WPL seem to be holding for now. The stock rallied off that level quite quickly and then spent the following few months tracking sideways. This price action is a positive sign. In the lead-up to last week's result, WPL broke beyond that sideways action and started to head towards resistance near $30. The stock looks like it is ready to leave behind the sub-$28 levels. A move back towards the $28's in the short term to retest any buying support would be an opportunity to go long. Given that the price of oil is not trending higher yet, we expect the price of WPL to be range bound between about $28 and $33 for the next few months or so.
Content included in this article is not by association the view of FNArena (see our disclaimer).
Michael Gable is managing Director of Fairmont Equities (www.fairmontequities.com)
Michael assists investors to achieve their goals by providing advice ranging from short term trading to longer term portfolio management, deals in all ASX listed securities and specialises in covered call writing to help long term investors protect their share portfolios and generate additional income.
Michael is RG146 Accredited and holds the following formal qualifications:
• Bachelor of Engineering, Hons. (University of Sydney)
• Bachelor of Commerce (University of Sydney)
• Diploma of Mortgage Lending (Finsia)
• Diploma of Financial Services [Financial Planning] (Finsia)
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2
.jpg)
Disclaimer
Michael Gable is an Authorised Representative (No. 376892) and Fairmont Equities Pty Ltd is a Corporate Authorised Representative (No. 444397) of Novus Capital Limited (AFS Licence No. 238168). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.
