Woolworths Limited (ASX:WOW) HEFFX Weekly Review

Woolworths Limited (ASX:WOW) HEFFX Weekly Review

Woolworths Limited (ASX:WOW) HEFFX Weekly Review

  • WOOLWORTHS denies it is trialling Uber-style surge pricing despite electronic tickets popping up in at least one of its stores.
  • A former Woolies employee has revealed the supermarket giant has trialled electronic pricing which is currently being used in the UK and allows retailers to hike up costs during peak periods and public holidays by having electronic LCD screens instead of paper tickets.
  • A Woolworths spokeswoman told news.com.au it had no plans to introduce surge pricing to its supermarkets, saying electronic price tags would only be introduced to make operations more efficient.
  • A range of drinking glasses sold across Australia are being recalled amid fears they may break “during normal use” and cut the hands of whoever is holding it.
  • The recall issued by the ACCC on Monday warns that the “inspire Glass Tumbler” sets, which come in both large and small sizes, ought to be returned as soon as possible for a refund, The Fraser Coast Chronicle reports.
  • The glassware has been sold at Woolworths and Safeway stores throughout the country since July 10, 2016.

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.

  • Shoppers have been allowed to return to a Woolworths store in Ashwood after it was evacuated due to a bomb scare.
  • A police spokeswoman said the business had been deemed safe following a series of checks by police.
  • Shoppers had been evacuated from the supermarket on Warrigal Road about 8.30am, as police conducted safety checks.
  • A Woolworths staff member said “there was panic” when shoppers and staff were evacuated from the supermarket.
  • One of Woolworths’ prime Nowra CBD land holdings on the corner of Bridge Road and Hyam Street, opposite Shoalhaven City Council and Shoalhaven Entertainment Centre (SEC) which it has owned since 1988. Mr Russell said the location is zoned for a variety of uses, including multi dwelling housing, hotels/motel accommodation, education facilities, medical centres or unit blocks.
  • Woolworths, one of the major corporations accused of “land banking” in the Nowra CBD says it remains committed to the Shoalhaven.
  • Shoalhaven real estate agent Peter Russell has questioned if Stockland and Woolworths (Fabcot Developments) were “killing the Nowra CBD” after purchasing a number of blocks, some close to 20 years ago, which sit vacant and remain undeveloped.
  • Woolworths sells EziBuy for undisclosed sum to Sydney investment firm Alceon

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 25.87.

The projected upper bound is: 26.32.

The projected lower bound is: 24.74.

The projected closing price is: 25.53.

WOOLWORTHS FPO closed down -0.300 at 25.540. Volume was 84% above average (neutral) and Bollinger Bands were 22% wider than normal.

Open        High         Low          Close        Volume
25.400     25.630     25.300     25.540     5,808,776

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

Moving Averages: 10-period      50-period     200-period
Close:                       25.44             26.21             24.93
Volatility:                24                  19                   19
Volume:                  4,366,182     3,191,802     3,201,740

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 gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
WOOLWORTHS FPO is currently 2.5% 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 30 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 72.1952. This is not an overbought or oversold reading. The last signal was a sell 0 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 43.86. 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 85 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 -30. This is not a topping or bottoming area. The last signal was a buy 5 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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