$JSEWBO - WBHO: When Fundamentals And Technicals Collide
Construction and materials group Wilson Bayly Holmes-Ovcon (WBHO) reported its first annual loss in its 52 years in its 2022 results.
Low levels of construction activity in the UK and slow government infrastructure rollout in SA paint a grim picture for construction companies.
Many still view WBHO as the best run and well placed company compared to its peers.
A look at the chart of WBHO paints a very gloomy picture. From the 2008 peak, the share has generally moved sideways.
The all time high came in November 2013 at R184,90 and this level was challenged again in February 2018 though the bulls fell just short at R181,01.
This scenario gives us a potential double top but the break below the would-be neckline at R89.47 has seen price fluctuate above and below this level making it relatively insignificant.
With the double top not holding much weight, the key level to watch is R63,50 and if this level holds and price breaks above the resistance trendline, perhaps the share can rally again.
Low levels of construction activity in the UK and slow government infrastructure rollout in SA paint a grim picture for construction companies.
Many still view WBHO as the best run and well placed company compared to its peers.
A look at the chart of WBHO paints a very gloomy picture. From the 2008 peak, the share has generally moved sideways.
The all time high came in November 2013 at R184,90 and this level was challenged again in February 2018 though the bulls fell just short at R181,01.
This scenario gives us a potential double top but the break below the would-be neckline at R89.47 has seen price fluctuate above and below this level making it relatively insignificant.
With the double top not holding much weight, the key level to watch is R63,50 and if this level holds and price breaks above the resistance trendline, perhaps the share can rally again.