One of the nation’s leading supermarket chains announced its Q1 FY21 results recently.
Woolworths Group Ltd [ASX:WOW] experienced double digit growth through the first quarter of this financial year.
The announcement saw the WOW share price fall back 0.90% to trade at $38.46 at time of writing.
What’s happening at Woolworths Group Ltd?
This year is weird to say the very least, and throughout it the likes of Woolworths seem to have gotten more publicity than ever.
From toilet paper shortages, to customers fighting in their stores over items as they stockpile, to restricting shop opening hours.
It’s been a big year for the retailer, mostly due to the effect of the COVID-19 pandemic.
While all this took place, the company was still able to record a double-digit boost in sales, up 12.3% versus the same time last year.
A lot of this came from the growth of their ecommerce sales up 86.7%, and the success of the Ooshies promotion.
The chaos of 2020 aside, the company was still able to record some decent figures for the first quarter of FY21.
Where to from here for WOW share price?
Before the pandemic hit, Woolworths had been trading at an all-time high of $43.96 before falling away nearly 27%.
The share price did rebound but didn’t take off and rocket up like a lot of other retailers have this year.
Being an enormous retailer with a strong online presence, it seems odd the stock price didn’t shoot up with people stuck at home and doing ever more shopping online.
Looking at the longer-term time frame, it can be seen that the stock may be moving into the corrective phase of price movement.
I held a bearish view of Woolworths last year and thought it may be due for a move down. Although I had no idea a pandemic would show up.
For the price to be considered bullish, it would need to move up above the resistance level of $40.79 and create a new high.
On the downside, if the corrective wave does take over, then the levels of $35.96 and $32.08 may become the focus in the coming months.
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