Woolworths Limited (ASX:WOW) HEFFX Highlights

Woolworths Limited (ASX:WOW) HEFFX Highlights

Woolworths Limited (ASX:WOW) HEFFX Highlights

  • Woolworths supermarket says it will not stock Coke No Sugar
  • Woolworths’ fast turnaround puts pressure back on Coles
  • Pouring more than $1.5 billion in lower prices and a better in-store experience seems to have finally paid off for Woolworths.
  • According to a new report from UBS, the turnaround of the nation’s biggest supermarket chain is accelerating at a faster pace than most anticipated, while arch rival Coles is losing momentum.
  • Dominos ditches Coca-Cola for rivals Pepsi – a day after Woolworths refused to stock Coke’s new sugar free drink

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 ranging.

By the way, prices are vulnerable to a correction towards 25.85.

The projected upper bound is: 26.27.

The projected lower bound is: 24.67.

The projected closing price is: 25.47.

WOOLWORTHS FPO closed down -0.050 at 25.500. Volume was 23% below average (neutral) and Bollinger Bands were 0% wider than normal.

Open         High         Low           Close          Volume
25.350      25.590      25.330      25.500      2,305,814

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

Moving Averages: 10-period       50-period     200-period
Close:                       25.58              26.09            25.00
Volatility:                17                    20                  20
Volume:                  3,183,924      3,195,102      3,180,792

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 2.0% above 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 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 35 periods.

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 58.2915. This is not an overbought or oversold reading. The last signal was a sell 5 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 45.02. 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 sell 90 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 9. This is not a topping or bottoming area. The last signal was a buy 10 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 6 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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