What is Happening to the Share Price of Seven West Media Ltd?

What does Seven West Media Ltd do?

Seven West Media Ltd [ASX:SWM], is an Australian media business with business segments comprising Free to Air Television, Newspapers, Magazines, and Online.

The Seven Network is Australia’s largest commercial television network by audience and advertising market share. Seven West Media is also creating a significant presence in online and new communications technologies, such as through its interest in, Yahoo!7.

An announcement to the market on 9 June, said Seven’s rating performance has been strong, delivering the largest gap to their closest competitor since 2011.

That’s interesting, but what is the chart telling you?

What is the chart telling you?

I personally find it helpful to bring up a chart. Here’s the daily chart of SWM:

Seven west

Source: STEX

The stock was slightly down today. It is now threatening to take out the previous low in June. If a significant break of the previous June low should occur, it may indicate softer earnings to come for SWM.

What now for SWM shares?

Well the chart will tell you, let’s see how it reacts to the June low.

My previous post on Friday, on the Nine Network, combined with this post seem to indicate a tough market for free to air television and traditional publishing. Advertising revenue is soft, the free to airs are losing advertising share to the internet which is far more targeted in its marketing. Networks like Seven and Nine may have to start looking beyond the free to air market to generate more revenues, which I am sure they are doing.

Start to read the market through the charts. To get your education started go here.

Terence Duffy,

Research Analyst, Cycles, Trends and Forecasts

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Terence Duffy is an analyst and chartist, specialising in researching economic trends and cycles.  His primary focus is housing and land affordability. But you can also depend on him to offer his unique analysis of stock market charts. As Terence will show you, the charts often forecast, well in advance, the good or bad news to come — which he details in Cycles, Trends and Forecasts.

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