Technicals | Jul 20 2021
This story features WESFARMERS LIMITED. For more info SHARE ANALYSIS: WES
By Michael Gable
US share markets have had a rough couple of sessions and this has seen the S&P 500 Index come back to the 50-day moving average. It tends to respect this level fairly well, so it will be interesting to see what happens tonight – whether it bounces off that level, or falls through it. Clearly, a break under that would be a negative for markets so our advice is to keep an eye on what happens tonight. It may well bounce off that, so it is too early to get bearish, we just need that extra day or so to see how it trades. Domestically, the S&P/ASX 200 Index is likely to breach that today. It has been trading sideways for the last several weeks but all the while it has remained in an uptrend. Price action in the next day or so again will therefore tell us whether to become bearish on the local index or not.
In terms of today's research, we have analysed Wesfarmers ((WES)).
We turned positive on WES at the start of June as we noticed the upside break out of the cup and handle formation. The last few weeks has seen the share price consolidate once more and yesterday's push higher indicates that once again it is ready to head higher. However, on any market weakness, we would be targeting support levels near $58 and $56, the latter would need to hold for the overall chart to remain bullish.
Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services.
Michael is RG146 Accredited and holds the following formal qualifications:
• Bachelor of Engineering, Hons. (University of Sydney)
• Bachelor of Commerce (University of Sydney)
• Diploma of Mortgage Lending (Finsia)
• Diploma of Financial Services [Financial Planning] (Finsia)
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2
Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.
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For more info SHARE ANALYSIS: WES - WESFARMERS LIMITED