$Woolworths Group Ltd (WOW.AU)$ shares fell 6.19% on Wednesday, with trading volume expanding to A$145.35 million. Woolworths has fallen 4.61% over the past week, with a cumulative loss of 13.02% year-to-date.

Woolworths 's technical analysis chart:

Technical Analysis:

• Support: A$30.50

• Resistance: A$33.30

• Price range A$30.50 to A$33.30: The trading range indicates a heavy concentration of selling orders, with the stock price on an downward trend. There's a high concentration of trapped positions within the trading range, which implies strong resistance to any upward movement. The stock started to decline near A$33.30 due to selling pressure and repeatedly touched the A$30.50 level, where it seems to find some support. Going forward, it's crucial to watch whether the support at A$30.50 holds and if it can lead to a potential rebound.

Market News :

Woolworths announced its Q1 sales results and trading update on October 30, 2024. In the first quarter of FY25, the company's sales rose by 4.5%, or 3.3% if excluding Petstock. The total group sales reached A$18 billion, a 4.5% increase from the previous year's A$17.22 billion.

Australian Food's total sales grew by 3.8%, driven by a strong focus on value, improved availability, popular Disney collectibles, and a robust 23.6% increase in eCommerce sales.

Although the crucial Q2 trading period is still ahead, the company anticipates that the EBIT for Australian Food in the first half will be lower than previously expected. Woolworths currently estimates the H1 FY25 EBIT, which includes an additional A$40 million in supply chain costs, to be between A$1.48 billion and A$1.53 billion, compared to A$1.5951 billion in H1 FY24.

Overall Analysis:

Fundamentally, focus on the company's performance and operational status. Technically, pay attention to whether the support levels hold and if the resistance levels can be effectively breached.

In this scenario, investors should adopt a cautious strategy, setting stop-loss points to manage risk and maintaining ongoing vigilance regarding company developments and market conditions.