After recently merging with BHP’s petroleum business, Woodside (WDS) is now a $65 billion energy business and its share price is back on the move.
“The share price rallied earlier this year on the back of a rally in oil prices before easing off again,” Michael said.
“Despite the recent decline in crude, I think that oil prices are now on the way back up and will stay that way because of years of underinvestment in the oil sector. WDS will benefit from this.
“After rallying strongly in the first quarter of this year, WDS then essentially traded sideways in one large consolidation.
“Apart from a brief spike at the start of June when it merged with BHP’s oil assets, it has essentially formed a symmetrical triangle with a tightening range over time.
“Last week it broke free of this range on improved volume (circled). The stock should now get back into an uptrend. Current levels are a buying opportunity,” Michael concluded.
Woodside Energy Group Limited (WDS)
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