With a market capitalization of USD $19.41 Billion, Woodside Petroleum Ltd (ASX:WPL) falls in the category of stocks popularly identified as large-caps. These are established companies that attract investors due to diversified revenue streams and capability to enhance total returns through dividends and buybacks. While value and historical performance are important in analyzing a company, its financial health is the key behind consistent shareholder returns. On this front, WPL gives a signal of strength with its debt to equity ratio of 31.8%, which is below my acceptable limit of 40%.
Although Woodside Petroleum’s debt levels aren’t high, it needs strong operating cash flow to service that debt. As a result, I seek an operating-cash-flow to total-debt ratio of over 20% from a financially sound company. On this front, WPL demonstrates financial strength with an operating-cash-flow to total-debt ratio of 52%. This indicates the company’s ability to cover debt obligations even if it chooses to enhance shareholder returns through dividends or invest in growth opportunities.
Woodside Petroleum’s operating cash flow is strong, and it’s low gearing is a positive sign for existing and potential investors. Thus, despite not meeting one of the criteria, the company has potential to deliver strong returns in the future.
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 30.62.
The projected upper bound is: 30.32.
The projected lower bound is: 27.89.
The projected closing price is: 29.11.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.
Separating lines occurred. If the lines occur during an uptrend and the first line is black and the second is white (which is the case with WOODSIDE FPO) then this suggests that the uptrend should continue.
If the separating lines occur during a downtrend (which appears to be the case with WOODSIDE FPO) and the first line is white and the second is black (which is not the case with WOODSIDE FPO) then this suggests that the downtrend should continue.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 50.0000. This is not an overbought or oversold reading. The last signal was a buy 3 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 44.42. 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 23 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 0 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 4 period(s) ago.
Rex Takasugi – TD Profile
WOODSIDE FPO closed up 0.330 at 29.170. Volume was 14% below average (neutral) and Bollinger Bands were 15% narrower than normal.
Open High Low Close Volume
29.000 29.320 28.970 29.170 2,003,081
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 29.22 30.47 30.97
Volatility: 30 25 24
Volume: 2,147,324 2,434,191 2,337,972
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.
WOODSIDE FPO is currently 5.8% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of WPL.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on WPL.AX and have had this outlook for the last 1 periods.
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