Three reasons to buy Woolworths (ASX:WOW) for atleast a bounce to the $30-$31 level?
1. Buy the news – On Wednesday, Woolies annouced CEO retirement and reduced earnings guidance
2. Today (Friday) it closed above the intermediate down trend which begun in February as shown on the daily chart
3. Completed five waves up to the $38’s which I nailed here, possibly completed five waves down this week as shown on the weekly chart
Risk is a weekly close below new green up arrow. Risk less than a $1, Reward about $4 per share.
I suspect this call will be unpopular with the majority.
Update 25 June
Seems the call was unpopular. Price closed today back in the downtrend and below my line in the sand $26.50 as per the daily chart below. This means that the probability of a lower share price for Woolworths is now greater than it was just a few days ago. I closed my trade for a 72cent loss. Atleast groceries are getting cheaper!!!
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