Woolworths Group Limited (ASX: WOW)

Woolworths Group Limited (ASX: WOW) is involved in retail operations. Its segments consist of Australian Food, New Zealand Food, Endeavor Drinks, BIG W, and Hotels.

Technical Analysis: On the Weekly chart, the WOW price witnessed a breakout of the falling trendline, and the price is sustaining above the same trendline. Moreover, the momentum oscillator RSI (14-period) is showing a reading of ~56.187 level, indicating positive momentum. Further, the prices are trading above the trend-following indicator 21-period & 50-period SMA, which may act as a crucial support level. An important support level for the stock is placed at AUD 34.100 while the key resistance level is placed at AUD 42.250.

Considering the company’s current price levels broke a downward sloping trend line by upside, momentum oscillator analysis, it is prudent to recommend a ‘Hold’ rating on this stock. The stock was analyzed as per the closing price of AUD 38.02 per share, as on 11^th August 2022, down by ~0.05%.

Markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Daily Technical Chart – WOW

Coles Group Ltd (ASX: COL)

Coles Group Limited (ASX: COL) is a retailer of fresh food, groceries, general merchandise, fuel, liquor, and financial services. The company operates through a network of retail stores in Australia besides the online platform.

Technical Analysis: On a Weekly chart, the COL is facing the resistance of the trendline. The momentum oscillator RSI (14-period) is moving around the oversold zone and showing a reading of ~57.623. An important support level for the stock is placed at AUD 16.50 while the key resistance level is placed at AUD 20.75.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Considering the company’s current price levels facing the resistance, and momentum indicator analysis, a ‘Watch’ recommendation is given on this stock. The stock was analyzed as per the closing price of AUD 18.72 per share on 11^th August 2022, down by 0.11%.

Weekly Technical Chart – COL

Cardno Limited (ASX: CDD)

Cardno provides environmental and engineering services to mining and energy, ocean and coastal, land, buildings, and transportation sectors.

Technical Analysis: On a weekly chart, CDD’s prices are moving in a consolidation zone at the higher level and formed a bearish candlestick pattern with the negative diversion on the RSI indicator. The momentum oscillator RSI (14-period) is placed in overbought territory and shows a reading of ~92.127. An important support level for the stock is placed at AUD 0.55 while the key resistance level is placed at AUD 0.71.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Considering the company’s current price levels moving in a consolidation zone, and momentum indicator analysis, a ‘Watch’ recommendation is given on this stock. The stock was analyzed as per the closing price of AUD 0.63 per share on 11^th August 2022.

Weekly Technical Chart – CDD

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: Investment decision should be made depending on an individual’s appetite for upside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report.

Note 3: Related Risks: This report may be looked at from high-risk perspective. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

The Green colour line reflects the 21-period moving average. SMA helps to identify existing price trends. If the prices are trading above the 21-period, prices are currently in a bullish trend (Vice – Versa).

The Blue colour line reflects the 50-period moving average. SMA helps to identify existing price trends. If the prices are trading above the 50-period, prices are currently in a bullish trend (Vice – Versa).

The Orange and Yellow colour line represents the Trendline.

The Purple colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period), which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status, while a reading of 30 or below suggests an oversold status.

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