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Woolies has been the leading retail stock in recent months on the JSE, and it’s now gone on to break out above important resistance levels. This is bullish and the stock has two higher price targets.
WOOLIES (WHL) – Higher targets
Recommendation: BUY
Current Trend: Short and med-term up.
Strategy: Buy at current levels
Chart Setup: Woolies a broken out above line 1 to confirm a large “cup and handle” pattern. It has two higher targets.
- Its Stochastic is overbought so it might pull back a bit more in the immediate short-term.
(Daily chart)
Strategy Details: Buy at current levels if not in.
Target: First target (T1) is R63.00, based on its consolidation of the past month. But its larger target is R73.80, based on the large rounding bottom/cup since last December.
Stop-loss: A close below R55.00 (which is also below line 1).
- Colin Abrams is an independent technical analyst. To subscribe to more recommendations by the author, or attend trading courses, please go to www.themarket.co.za
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