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WOW - WOOLWORTHS GROUP LIMITED


Meteor

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Hello,

I know my user name isn't arty but the weekly chart shows a mundane stock in regards to price action. It has literally been in a trading range of 24/25 - 30 since mid June 2008.

The range was choppy before July - August 09 when an advance set it, but it was turned down at around that $30 number yet again.

Better opportunities out there, Woolies is literally a sleeping giant compared to some stock's movements over the past 8 - 10 months. Boring unless you want to take a long at the bottom of the range or short at the top if turning points continue to occur there.

Apologies for the quickly drawn chart.

2c., i could be wrong blah blah mba.

 

http://i137.photobucket.com/albums/q239/kyle-sutcliffe/big.gif

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Hi MBA and Walbrook

You're right, MBA - WOW is a boring stock and that's the reason it hasn't been of any particular interest to me.

 

(as an aside, Walbrook: If you want to seek my opinion on a stock I have "ignored", just pop me an IM. I still may ignore it if I don't have the time or interest, but I'll be able to tell you :) )

 

Depending on whether you want to trade it off a daily chart, or "to have and to hold" in a portfolio based on a weekly, I attach two charts. In the Daily, I've written the essential observations as brief comments. Yes, Trinity started to show a few alerts, but every "maybe soon..." was quickly snuffed out, and my current position - if I held one - would be Short (last arrow is down).

 

post-20537-1260800059.gif

A break above $27.60 on good volume might change that, however.

 

The longer-scale Weekly chart is also technically a Short; having found support at the 50% Fib level is however encouraging. If the buying momentum could be maintained and price break above $28.25 (the pink horizontal line on the right), the likelihood of more upside would increase considerably. Especially if the recent High (100% of the drawn range) were broken, I might accumulate above $30 for an optimistic target of slightly above $37 (doubling the range drawn $23 - $30.xx).

 

post-20537-1260800570.gif

Having said that, I have to be mindful of the time periods involved: The target may be a year or longer in waiting. While 20% interest beats bank interest, it's by no means guaranteed; that's why I prefer less "boring" and more volatile stocks.

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