JSE's Woolworths showing potential continued bearishness.
After reaching highs of R108.00 on 02 November 2015, "Woolies" took a dive and found support at R24.00 on 23 Mar 2020. The instrument has since painted a rising channel and buyers failed to take price higher than the R81.00 ~ R84.00 resistance zone, effectively painting a double top at resistance.
Looking at the current price action, after painting a double top structure price closed strongly bearish at the 50 Week EMA (also strongly bearish below the 50 Day EMA on the daily time frame). Warning of continued bearishness can be taken if the instrument strongly closes and consolidates below R68.50, which will also be below the 50 Week MA.
First targets to the downside will be R66.80, then R62.00 and finally R58.24
Below R58.24 Woolies may tumble to R30.00 ~ R24.00.
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Looking at the current price action, after painting a double top structure price closed strongly bearish at the 50 Week EMA (also strongly bearish below the 50 Day EMA on the daily time frame). Warning of continued bearishness can be taken if the instrument strongly closes and consolidates below R68.50, which will also be below the 50 Week MA.
First targets to the downside will be R66.80, then R62.00 and finally R58.24
Below R58.24 Woolies may tumble to R30.00 ~ R24.00.
Like, comment and follow if the above analysis was helpful.