Downside For Woolies

This story features WOOLWORTHS GROUP LIMITED. For more info SHARE ANALYSIS: WOW

By Nick Linton-Ffrost

Sell

Woolworths ((WOW)) appears to have broken the 2 month trend line line around 35.50 which implies a move towards 33.00 over the next week or two.

The confirmed break below our pivot level 35.20 is enough to trigger a sell based on our assumption that the move lower from 36.50 is a 3rd wave which should be followed by trading between 34.50 and 35.10 before a 5th leg lower to 33.00.

Our view is negated after 2-3 days trading above 35.70.

Trading tactics

Open shorts using a 35.00 limit placing stops at 35.75 and looking for a move to 33.00. Otherwise wait for a lower high to form below 35.50 before opening shorts and placing stops above that lower high.
 

Another trading idea from

Fifth Wave | fwtc.com.au                                               

FW generates over 150 Trading Alerts on the ASX100 each year. We are a subscription service specialising in short term technical strategies based on 27 years experience.

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