Woolworths has come under pressure as concerns over it's Australian operations mount. In addition, board resignations, sluggish results and a dim outlook seen this once 'market darling' experience continuous selling pressure. In the short term, the share is down from 5800c to just below 4500c. Technically, the Momentum indicator is printing a bullish divergence while the Stochastic suggests a temporarily oversold level. In addition, the pullback has also seen the share make a deep re-test of the falling wedge extension. At current levels, the share appears oversold and offers an opportunity to take a buy/long position in anticipation of a short term rebound.
These are the trade levels:
Buy WHL at current levels (4433c) or better Stop-loss: 4280c Take Profit Target: 4760c (7.3% ungeared)