Woolworths reported on the 20 August 2018, the underlying profit rose 12.9 percent as massive price cuts attracted more shoppers to its stores. The country’s biggest grocery store chain reported an underlying net profit, which excludes one-offs, of A$1.61 billion for the year to June, compared with A$1.42 billion a year ago. Woolworths declared a final dividend of $0.50 a share, the same as last year. It also declared a 2018 special dividend of $0.10 a share.
Woolworths seen on this Weekly chart, shows the price trend is UP, as the higher low set in March preceded this current price rally above resistance of $27.70. The current retracement low or “fake out low” has not changed the underlying trend. Along with this fake out bar, this week’s bar although far from complete has seen the Relative Strength Indicator turn higher back towards the 50 level.
The daily chart for Woolworths shows a current daily down trend in place. The Bullish divergence between price and Relative strength indicator is worthy of note as an early aggressive buy signal, with the stop loss set below the last low at $27.80.
RSI Bullish divergence described, is where the price makes a new low (LL) from the last low as the RSI indicator makes a higher low (HL) from the last low. RSI divergence is often an early signal for trend change as the RSI signal momentum, in this case momentum is changing from down to up.
