ROME - MAY, 2019: Luxury watches collection including Zenith El Primero, Eberhard Extra Fort, Longines and different models of Rolex. Illustrative editorial.
Watches of Switzerland (LON: WOSG) share price is on the rise as the firm released its full-year results on Thursday. The latest earnings report revealed record profit and sales for the luxury watch retailer. This significantly increased investor interest in its stock which surged after the news.
On Friday, FTSE 100 index extended its weekly gains and added another 19.7 points. The index was standing at 7,448 till press time. Watches of Switzerland shares slid by 1.41% today after a 10.76% increase in yesterday’s trading session.
The latest financial results have caused a massive rebound in WOSG shares which were in a downward spiral. The shares of the British retailer of Swiss watches are currently up 14.8% this week. The positive price action follows months of downtrend.
Despite the recent surge, Watches of Switzerland share price remains 32.65% down from its yearly peak of 1037p. This week’s positive price action can be attributed to the increase in sales despite an increase in prices and strong guidance for the current fiscal year.
It can be seen on the following LON: WOSG chart that the price action has formed a falling wedge pattern on the daily chart. The upper trendline of this wedge is acting as a resistance as the shares failed to break out above it yesterday.
A clear break out of this wedge could make Watches of Switzerland share price forecast very bullish. This will be a strong bullish reversal signal, and the bulls may target 850p level. However, the stock is yet to break out and is still trading within the pattern.
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This post was last modified on Jul 14, 2023, 12:58 BST 12:58