Woolworths Shares Eying Next Move Higher

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This story features WOOLWORTHS GROUP LIMITED.
For more info SHARE ANALYSIS: WOW
The company is included in ASX20, ASX50, ASX100, ASX200, ASX300 and ALL-ORDS

Michael Gable of Fairmont Equities suggests current consolidation in Woolworths shares points to another leg higher.

By Michael Gable 

US markets seem to have kicked off their Santa rally and might be dragging us along with it.

The spark seems to have been the lower-than-expected CPI numbers for November, which came in at 2.6% year-on-year for core inflation, instead of 3%.

However, it has been widely reported that some bits of data are missing and unreliable due to the recent government shut-down.

The market seems happy either way, but many are still clearly not buying the line that inflation is dead and buried, with precious metals and base metals breaking higher as investors look to hard assets as a hedge against future inflation.

Today, we offer a technical view on Woolworths Group ((WOW)).

Woolworths remains in a long-term downtrend since peaking in 2021.

However, short-term we can see some further upside from here.

Price action at the end of October was very bullish as the stock traded from the mid-$26’s to the mid-$28’s in the space of two days.

It then consolidated sideways for a few weeks before rallying again to the mid-$29’s.

The past few weeks has once again seen WOW trade sideways and this means that it is preparing for the next move higher.

Woolworths is a buy here for those looking at it making a run into the low $30’s.

Trades can consider a tight stop near the December low of $28.83

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)

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

Disclaimer

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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