Technicals | Aug 23 2022
This story features WOODSIDE ENERGY GROUP LIMITED. For more info SHARE ANALYSIS: WDS
By Michael Gable
We commented last week that the S&P500 Index would likely touch the 200-day moving average and then consolidate for a few days.
This is now occurring, so after seeing our local market rally for five straight weeks, we should now expect it to cool off here.
Whilst it is too early to consider any specific downside targets, as we have been saying for a while now, the market will struggle to make serious progress while the number of interest rate rises ahead of us is still uncertain.
We should expect a few months of sideways markets here at best, and it remains to be seen how deep any of the dips are along the way.
In the meantime, we are seeing early signs of strength in the oil price and oil stocks in general. This week's report has a chart on Woodside Energy ((WDS)).
After rallying strongly in the first quarter of this year, WDS essentially traded sideways in one large consolidation.
Apart from a brief spike at the start of June, it has essentially formed a symmetrical triangle with a tightening range over time.
Last week it broke free of this range on improved volume. It is naturally finding a little resistance near $34 but it should surpass that fairly quickly and get back into an uptrend. Current levels are a buying opportunity.
Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services.
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
Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). 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.
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For more info SHARE ANALYSIS: WDS - WOODSIDE ENERGY GROUP LIMITED