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WOW - WOOLWORTHS GROUP LIMITED


Meteor

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WOW created a bit of interest with the bid for ALH and full year results, but the down trend continues with a lower high of $11.80 on the 20th of July.

 

If you look at the highs starting from the low of $10.78 on the 10th of November you get the following.

 

$11.48.......25-11-03

$11.94.......7-1-04

$12.20.......19-3-04 down trend starts from here

$12.12.......13-5-04

$11.95.......21-6-04

$11.80.......20-7-04

 

Note the last 3 are lower highs.

 

Now looks at the lows.

 

$10.78........10-11-03

$11.27........16-2-04

$11.50........27-4-04

$11.40........3-06-04

$11.38........16-7-04

 

WOW has been in a down trend since the 19th of March. falling 5% from a high of $12.20 to current price of $11.59.

 

Still looks capable of breaking below $11.00. IMHO

Any thoughts on this one BSA or TheKiwi ?

 

Tex.

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Hi Tex,

I presume you are thinking WOW has topped and due for a fall? you may be correct.

One may have thought WOW had topped back in 1998 to 2000 when it was in a similar down trending channel, but would have been wrong as it broke from the channel around $5.50 and ran up to $13.50. Of course it had a serious re rating, the question is know has it reached full value or can anything fundamentally re rate this company again which would allow wave three of the uptrend?

 

Cheers

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Hi Tex,

 

A little further from previous post and up a bit closer to WOW.

I assume you are looking for a possible short? Agree re down trend as you have mentioned, if you step back even further WOW has been in a down trending channel since reaching all time highs in April of 02, on balance volume weekly providing no clues, other than down with the trend.

If it price falls below the first red dotted support line then it will likely head for the lower channel, this could also see it below $10.60 ish zone as highlighted by the red dotted support line and the encircled area's. If this were to take place I would imagine a lot of stops would be triggered. Retailers have been performing ok of late whilst WOW seems to be continuing down? has it topped??? have to wait and see.

 

Cheers

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Thanks for the reply BSA

 

 

No I don't short stocks..............considering we have been in a bull market since February 2003, I don't think it's a good idea, even if WOW has been trending down.

I see shorting as gambling.

 

I simply have an interest in WOW, and would like others to comment from time to time.

I'm not a chartist, but I know a crap chart when I see one http://www.ShareScene.com/html/emoticons/laughingsmiley.gif

I don't plan to get into options for awhile yet.....maybe after Jay gives me a crash course !

 

 

 

Tex.

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  • 2 weeks later...

I don't think WOW is what I would consider a defensive stock (short term), but it does look to have broken its recent down trend.

Should be good for a trade http://www.ShareScene.com/html/emoticons/wink.gif

 

Tex.

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