Stock: Webjet Limited (WEB ASX)
Coming from a low of $4.38 in February of 2016, shares in online travel giant Webjet Ltd (WEB) exploded higher through the year in a move that saw the share price nearly triple on its way up to test levels around $11.90. By the end of 2016 price came back to consolidate and sit on top of $9.20, forming this level as what we would later see to be key long-term support in the process. In the 18 months that followed from November 2017 through until April 2018, we can see the stock remained range-bound between $9.20 key long-term support and $12.50 key long-term resistance in an extended period of sideways consolidation. The recent run-up has seen $12.50 taken out as the stock has run up to test all-time high levels around $14.27. Having rotated off the all-time high test, we are now on watch to see if previous resistance at $12.50 can become new support in the short term at least. Should the $12.50 be unable to hold firm then prices above the $9.20 key long-term support level may be seen again.
What Does Webjet Ltd Do?
Webjet is Australia & New Zealand’s leading online travel agency. The companies website arms its customers with the platform & tools to compare and book domestic & international travel, accommodation, holiday packages, travel insurance & car hire.
To access a list of company announcements, financial summary & dividend history – Click Here.
The Baron’s Brief – Official Summary
Whilst the recent break above $12.50 and subsequent test of all-time high’s is a positive move, it has been met with a swift bout of selling that has seen price quickly rotate back toward $12.50. The Baron remains on watch to see how price reacts back around the $12.50 mark. A deeper rotation back toward the key long-term support level is seen as an ideal opportunity to collect the boarding pass and buckle up for another move north.
Want More Trade-Ideas Delivered To Your Inbox Each Week? – Get On The Free Mailing Here
Disclaimer: The information contained in this article has been prepared solely for the entertainment & educational purposes of the reader and does NOT constitute financial or investment advice. Any examples presented in this article are for illustration purposes only. No person, persons or organisation are authorised or permitted by the authors to take any action on the reliance of this information without first consulting an authorised, accredited financial planner or advisor. The authors are entitled, at their sole discretion, to hold positions in the above-mentioned stock/s. The authors accept no responsibility for the accuracy, completeness or timeliness of the information contained in this article. Disclosure – No positions are currently held in WEB – ASX at the time of publishing this article (This is a disclosure and NOT A RECOMMENDATION).