Watching Woodside

I’m watching if Woodside Energy’s (WPL.AX) stock price breaks $27.60 this week.

If it does, it portends a move to the $30 level into a late March/early April window, with $30.85 being major resistance.

A break above $27.60 means the stock is making a ‘higher high’ than the same price seen in January 2021.

This is a market where I’m watching whether stocks are making ‘higher highs’ or ‘lower lows’ than their previous mark.

The overall message is that it’s a sellers market at these various levels.

And if the $27.60 level fails to be broken, selling at $26.50 (on the way down) will also be appropriate.

Buyers at today’s prices are playing for the last possible 10%, while medium term downside is 15% (back to $23.40)… makes for a terrible risk/reward consideration.

Coinciding with my Overbought Brent note (which I published immediately prior to this), Woodside’s stock price is also overbought on a Weekly basis and only its 6th such occurrence since 2007.

Furthermore, Woodside is mean reverting towards its 200 week moving average (that’s the blue line on the chart below).

February 14, 2022
by Rob Zdravevski
rob@karriasset.com.au