As noted below, price did break higher but didn't reach the target. It has since made a pennant pattern (bounded by blue dashed lines) above a strong level of support at $23.60. Assuming price breaks up out of this pattern it should move up towards $31.50 . Chartists say that gaps that form on the weekly chart (such as those in the Covid fall) will be filled by price subsequently rising. The rise into the pennant pattern filled the lower gap so will a rise go on to fill the higher gap at $33?

WPL 17Apr21

8 January 2021

WPL has been in a general long-term downtrend for 12 years but (perhaps because its price has been struggling for so long) it has made a resistance break pattern with a target of $31 – a 24% gain of yesterday’s close. Not surprisingly, several oil and gas stocks show an almost identical pattern (BPT and STO for example). A chart of the energy sector also shows the potential for a break higher and with rumblings about cuts to oil production in the news these stocks could all move up. But, remember their fortunes are all dependent on oil/gas prices. Since the March low price has broken above a downtrend, made a new uptrend (but a valid trendline can’t be drawn yet) and recently made a higher low followed by a higher peak. Several technical buy signals here.

WPL 8Jan21

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Robert Norman

Phone: 0428 346 951
Email: robert@sharecharting.com.au

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