JSE:WHL painting bearish price action, set to slip lower.
JSE's Woolworths Holdings Limited took a sharp nose dive in November 2015 from its all time highs of R108.00 and tumbled all the way to R24.00 where it found support in March 2020. Typical bullish short term bullish pullback trends lasted 6-8 months in that entire period. After price had found support it painted a steep rising channel which got capped off at around the R80.00 level and painted a double top, with the first top being in February 2023 and the 2nd one being in August 2023.
When we look at the latest price action, price impulsively fell in wave 1 after painting the 2nd top and is currently caught in a corrective wave 2 bearish pennant pattern with the Daily & Weekly RSI at neutral levels above the smoothing average. A downward break of this pennant could signal wave 3 of the downward move, with its termination being around R47.00 past the double top neckline that's sitting at R58.00.
A short term wave 4 pullback could be found around R47.00, potentially being the retest of the broken neckline before the stock plunges into wave 5 that could potentially terminate at around R30.00, representing an 88.6% fill of the steep rising channel. At these levels we can expect price to paint a correction that will either indicate a reversal of this entire downward move or its continuation in the higher wave degrees.
Current sentiments: Strongly Bearish with invalidation being put on the table if the stock starts trading and holding well above R72.50.
When we look at the latest price action, price impulsively fell in wave 1 after painting the 2nd top and is currently caught in a corrective wave 2 bearish pennant pattern with the Daily & Weekly RSI at neutral levels above the smoothing average. A downward break of this pennant could signal wave 3 of the downward move, with its termination being around R47.00 past the double top neckline that's sitting at R58.00.
A short term wave 4 pullback could be found around R47.00, potentially being the retest of the broken neckline before the stock plunges into wave 5 that could potentially terminate at around R30.00, representing an 88.6% fill of the steep rising channel. At these levels we can expect price to paint a correction that will either indicate a reversal of this entire downward move or its continuation in the higher wave degrees.
Current sentiments: Strongly Bearish with invalidation being put on the table if the stock starts trading and holding well above R72.50.