Westpac: Trapped Buyers

Technicals | May 31 2022

This story features WESTPAC BANKING CORPORATION. For more info SHARE ANALYSIS: WBC

By Michael Gable

The S&P 500 Index sits under its old support level near 4200. For this bounce to continue on a bit longer, it ideally needs to consolidate sideways here for a day or so and then that should allow it to push a bit higher.

However, we still view this current bounce as a relief rally and there is still a strong chance that we have not yet seen the lows for the year.

In today's report, we have analysis on Westpac ((WBC)).

In this monthly chart, we can see how Westpac shares have greatly under-performed the market since peaking in 2015. There is a very obvious downtrend line that has been in place during this time.

At the moment, the shares are once again finding resistance at this line. The buy trigger would be a break back above this line near $25, but a move back above $26 to make a "higher high" would be preferable.

If that were to occur, then we could expect a recovery in the share price. However, with many trapped buyers at higher levels, it may be slow going as plenty of resistance levels get encountered along the way.

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
Michael Gable is managing Director of  Fairmont Equities (www.fairmontequities.com)

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

Disclaimer

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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CHARTS

WBC

For more info SHARE ANALYSIS: WBC - WESTPAC BANKING CORPORATION