WHL has been such an interesting share to trade. After a couple of unsuccessful trades we try again for the 3rd time lucky. But this time we are prepared. Looking at the current state of affairs in South Africa at the moment. We can all agree that people are feeling the pinch. Woolworths caters for the more affluent South African and offers superior quality food, premier clothing such as Country Road and Trenery as well as many other high quality items. This all comes at a high price and Woolworths customers are going to hold back on purchasing such luxurious items. Coupled with the fact that Woolworths is more exposed to the rand than they are exposed offshore, now we have a rand which is 14.00 to the dollar. fundamentally speaking the share does not look good.
Technically speaking we can see a head and shoulders on the weekly chart and if the share closes below 5500 we can see the share take a tumble further to 4500.
- SL- 6300
Wishing you profitable trading.
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