The pennant pattern noted below failed and price fell away. 

WPL (not unsurprisingly) has made a similar pattern to STO since coming off its Covid low. Both stocks have been shockers since going into decline back in 2008. Price is in a formal downtrend and sitting on a level of support which could turn price up. The falling blue dashed line is a very strong level of resistance that I expect will be the catalyst to eventually see prices turn down. 

The two short rallies and subsequent pullbacks over the past 12 months show obvious similarities and the probability is that price will rise from current levels to repeat those prior moves. There are 3 charting techniques to determine a potential target for WPL and they all suggest about $31.50

Finally, WPL has two gaps down in the Covid fall. Charting theory says that price will usually rise to fill these and the lower gap was filled by the last rally before price turned down. This higher gap would be filled at $33 - which is quite close to mytarget and adds weight to that prediction.

WPL 4June21

16 April 2021

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


Robert Norman

Phone: 0428 346 951

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