Company Overview: Wood Group (John) PLC (LSE: WG.): is a United Kingdom-based global consulting and engineering company. The Company's segments include Projects, Operations, Consulting, and Investment Services (IVS). Its Projects segment is focused on providing front-end engineering services, procurement and project management. The Company’s Operations segment focuses on improving operational efficiency by providing maintenance, modification and operation services. The Consulting segment is a multi-sector specialist technical consultancy division providing advanced thinking to maximize value at every stage of the asset life cycle and Investment Services segment manages a range of legacy or non-core businesses and investments with a view to generating value through remediation and restructuring. This Report covers the Price Action, Technical Indicators Analysis along with the Support Levels, Resistance Levels, and Recommendations on this stock.

WG.’s Fundamental Commentary:

The Company has made accelerated progress in its first year of a three-year growth strategy. WG. has delivered revenue growth across all business units with overall revenue going up around 7.9% YoY during FY23. Moreover, the order book went up 4% to USD 6.3 billion at the end of FY23. The Company has upgraded its FY24 outlook and now expects adjusted EBITDA growth towards the top end of mid to high single digit driven by topline growth, evolving business mix and improved pricing.

WG.’s Technical Observation:

WG's prices have started to recover since the last financial report released in March, and the recent addition of a Chief Strategist Officer has elicited a positive reaction from the market. Consequently, the stock price is trading above the lower trendline with momentum. There is anticipation of a continuation in the Current Market Price (CMP) of GBX 149.80, supported by a strong volume buildup. The leading indicator RSI (14-period) is at 57.24, suggesting a bullish trend in the price. Moreover, the CMP is trading above both trending indicators, the 21-period SMAs and the 50-period SMAs, indicating their potential roles as support levels in the near term. The important support levels for the stock are situated at GBX 132.00 and GBX 125.00, while key resistance is positioned at GBX 166.00 and GBX 179.00 levels.

WG.’s Daily Chart

As per the above-mentioned price action and technical indicators analysis, a ‘Speculative Buy’ rating has been given on Wood Group (John) PLC (LSE: WG.) at the closing Price of GBX 149.80, as of May 02, 2024. Wood Group (John) PLC (LSE: WG.) was last covered in a report dated 20^th May 2022'. Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Markets are trading in a highly volatile zone currently due to certain Macro & Micro-economic data and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Related Risks: This report may be looked at from a high-risk perspective and recommendations are provided for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rate risks, currency risks, social and political instability risks etc.

Note 2: How to Read the Charts?

The Green colour line reflects the 21-period moving average while the red line indicates the 50- period moving average. SMA helps to identify existing price trend. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps in easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.

The reference date for all price data, currency, technical indicators, support, and resistance levels is May 02, 2024. The reference data in this report has been partly sourced from REFINITIV.

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

GBP: British pound sterling

GBX: British pence sterling

RSI: Relative Strength Index

USD: United States dollar

Note: Trading decisions require a thorough analysis by individuals. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.