What’s Happening to the Share Price of Worley Parsons Ltd?

What does Worley Parsons Ltd do?

Worley Parsons Limited [ASX:WOR] is a provider of professional services to the resources & energy sectors. The company provides engineering design and project delivery services, including maintenance and support services to the following sectors: hydrocarbons; minerals, metals & chemicals; infrastructure and environment and power.
Amid falling commodity and energy prices, the resources and hydrocarbons sector have endured tough times recently, but what is the chart telling us?

What does the chart look like?

I find it helpful to bring up a chart. Here’s the weekly chart of WOR.

WOR Chart

Source: STEX

The company released news yesterday, announcing that it was slashing its international workforce by more than 2000 people. It further stated that second half earnings would be 50% lower than its first half earnings and that it would take $125 million in pre-tax charges for fiscal 2015, divided between redundancy costs and onerous lease charges.
But the chart was telling you that already.

What now for WOR shares?

One could look now for some indications on the chart, to inform us whether the worst is over for this company. A further break of lows or not, will tell us plenty on that.
For the moment the trend remains down. You can get some more ideas on trading the trend here.
Cheers,

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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