#JSEWHL - Caution Rising Wedge- WHL has had a strong rally from thr R58 swing low and has reached swing high last seen in February this year..,
- Momentum seems to be slowing and price is tested the rising 20ema.
- Failure to take back the highs could see a fade to the 200dma
A rising wedge is a bearish pattern that begins wide at the bottom and contracts as prices move higher and the trading range narrows. It is characterized by a chart pattern which forms when the market makes higher highs and higher lows with a contracting range. When this pattern is found in an uptrend, it is considered a reversal pattern, as the contraction of the range indicates that the uptrend is losing strength
WHL trade ideas
TARGET on Woolies hit at R64.00 next target R70.93 - SMC M Formation formed on Woolies.
Broke below the trendline and the signs were all bearish.
21>7
Price >200
Target R64.00 which it hit.
But now it looks like there is upside to come due to SMC.
SMC (Smart Money Concepts)
First we look for LOL (Levels Of Liquidity).
This is where there is strong volume of buying or selling from the big boys.
We can see three LOLs.
1. 200MA -which the price is now above and could stay above
2. Previous support level
3. Hammer to the upside and Change of Character (reversal to uptrend)
New target with SMC is R70.93
The probability of the trade idea is low because we are fighting the greater trend that is down, but it's worth looking at with SMC.
Woolworths: Time for Bears to ChargeWoolies has been in a strong uptrend but recently has come against the following factors:
1. Time - it has been 26 weeks since it began an uptrend, quite long basing on history.
2. It has a building negative divergence on RSI14 (not shown here).
3. It is forming a swing high on daily & weekly time frame.
4. As price rose, volume decreased indicating there might be some stop losses triggered that pushed price up.
A weekly swing high confirmation is a good place to enter short while more risk accepting can do so on a daily time frame. After a pullback around 8-10% price can attempt another shot at higher price but major trend will be down.
TRADE UPDATE Woolies hit take profitM Formation formed on Woolies along with bearish indicators.
The target was hit at R64.00.
Now we are seeing Sell side liquidity where smart money is coming in sweeping all the selling side (buying into their orders) which could push the price up.
We can expect chop with upside in the next few days but no real signal has been given for a buy.
Will wait for the formation in the meantime.
Woolies showing a sell signal with an interesting observationM Formation formed on Woolies,
The price broke below and all systems go with the Bearish Engulfing candle.
21>7
Price >200
Target R64.00
interesting that the target is to the 200 MA. This means, the price has rallied at such a high inclination, that the price now wants to approach equilibrium
It's all we need for a trade.
ABOUT
Woolworths South Africa is a subsidiary of Woolworths Holdings Limited, a South African retail company founded in 1931.
Woolworths South Africa operates in the food, clothing, and general merchandise retail sectors.
Woolworths South Africa is known for its high-quality food products, including fresh produce, organic products, and artisanal bread.
Woolworths South Africa has a loyalty program called MySchool MyVillage MyPlanet, which allows customers to support local schools and charities by shopping at Woolworths.
ABOUT DAVID JONES
In 2014, Woolworths South Africa acquired David Jones Limited for AUD 2.1 billion, with the aim of expanding its presence in the Australian retail market. The acquisition was seen as a strategic move for Woolworths South Africa, as it provided a platform for the company to expand its retail operations beyond South Africa and into the Asia-Pacific region.
Since acquiring David Jones Limited, Woolworths South Africa has invested heavily in the brand, renovating stores, expanding product lines, and improving customer service. However, the acquisition has not been without its challenges, as the Australian retail market has been highly competitive and consumer spending has been affected by economic factors such as wage growth and housing prices.
Despite these challenges, Woolworths South Africa remains committed to its investment in David Jones Limited and sees the brand as an important part of its long-term growth strategy.
WHL: symmetrical triangle patternIt would appear that a classical example of a symmetrical triangle pattern is busy unfolding.
A price action above 5600 supports s bullish trend direction. Crossing below this level will negate the bullish trend. Further trend support above 5600.
Consolidation range from 5600 to 5800. Crossing above 5800 might support the price action to reach the target of 6100.
Crossing below 5600 will be the first sign of weakness.