Technicals | Nov 21 2023
This story features WOODSIDE ENERGY GROUP LIMITED. For more info SHARE ANALYSIS: WDS
By Michael Gable
Share markets here in and the US continue to look bullish and we still remain of the view that we will see a rally into the end of the year.
An interesting development last week were the moves in oil. After falling for a few weeks by nearly -15%, we then saw a -5% decline within one day to bring the oil price near the lower end of its yearly range.
The reaction to the move by many commentators and analysts is what we find interesting. Everyone seemed to turn bearish. But it was a classic example of people turning bearish after the worst has already happened.
When you get a big move down after a large decline, then usually that is a sign of capitulation and a low.
That seems to be the case here with the oil price bouncing strongly in the past two days. As a result, we have a chart of Woodside Energy Group ((WDS)) in today's report.
The recent pullback in WDS accelerated in the past few weeks which saw the stock become oversold and it retested the March low.
On cue, we got a buy signal on the RSI and a spike in volumes off the low. WDS gapped up yesterday and we now have a clear reversal in the stock.
WDS tends to bounce in a V-shape so a recovery from here should be swift. Current levels are a buying opportunity.
Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services.
Michael is RG146 Accredited and holds the following formal qualifications:
• Bachelor of Engineering, Hons. (University of Sydney)
• Bachelor of Commerce (University of Sydney)
• Diploma of Mortgage Lending (Finsia)
• Diploma of Financial Services [Financial Planning] (Finsia)
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2
Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.
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For more info SHARE ANALYSIS: WDS - WOODSIDE ENERGY GROUP LIMITED