Woolworths Limited (ASX:WOW) HEFFX Highlights

Woolworths Limited (ASX:WOW) HEFFX Highlights

Woolworths Limited (ASX:WOW) HEFFX Highlights

  • Woolworths has finalised its exit from its disastrous Masters hardware venture by completing the sale of its store sites.
  • The supermarket giant said it has completed the sale of Hydrox – the joint venture company it set up with US firm Lowe’s to run Masters – to the privately owned Home Investment Consortium for a headline sale price of $525 million.
  • Home Consortium plans to convert the Masters stores into large format retail centres featuring outlets including Spotlight, Anaconda, Chemist Warehouse, JB Hi-Fi and The Good Guys.
  • Lowe’s handed over its 33.3 per cent stake in Hydrox to Woolworths in August, in line with federal court proceedings, allowing the local retail giant to make the final step in selling the former Masters stores.

Woolworths Limited is an Australia-based company, which is engaged in retail operations. The Company’s segments include Australian Food and Petrol, New Zealand Supermarkets, Endeavour Drinks Group, BIGW and Hotels. The Australian Food and Petrol segment is engaged in the procurement of food and petroleum products for resale to customers in Australia. The New Zealand Supermarkets segment is engaged in the procurement of food and liquor products for resale to customers in New Zealand. The Endeavour Drinks Group segment is involved in the procurement of liquor products for resale to customers in Australia. The BIGW segment is engaged in the procurement of discount general merchandise products for resale to customers in Australia. The Hotels segment is engaged in the provision of a range of leisure and hospitality services, including food and alcohol, accommodation, entertainment and gaming in Australia. The Company’s brands include Essentials, Woolworths, Dan Murphy’s and BWS.

Overall, the bias in prices is: Downwards.

Short term: Prices are stalling.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 25.67.

The projected upper bound is: 25.48.

The projected lower bound is: 24.27.

The projected closing price is: 24.88.

WOOLWORTHS FPO closed up 0.040 at 24.920. Volume was 28% above average (neutral) and Bollinger Bands were 31% narrower than normal.

Open         High          Low           Close         Volume
24.790      24.920      24.610      24.920      3,653,147

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period      50-period      200-period
Close:                       24.88             25.78              25.84
Volatility:                14                   15                     17
Volume:                  2,516,299      2,674,906      2,938,864

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

WOOLWORTHS FPO is currently 3.6% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of WOW.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on WOW.AX and have had this outlook for the last 34 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 70.6349. This is not an overbought or oversold reading. The last signal was a buy 4 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 41.79. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 5 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -48. This is not a topping or bottoming area. The last signal was a buy 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 1 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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