Wesfarmers At Support Level

This story features WESFARMERS LIMITED. For more info SHARE ANALYSIS: WES

By Michael Gable

We have a shorter trading week with the ASX closed on Monday. We are set to start slightly weaker again following on from small falls overseas. The situation in Greece has weighed on sentiment and investors still seem concerned about positive news out of the US. This time, it was payroll numbers which implies interest rates in the US may start rising in the September quarter this year. The Australian market is back to the levels seen in January before the RBA started to cut rates again, so we expect some support to now come back in as investors slowly look beyond the noise from overseas.

Today we look at Wesfarmers ((WES)).

Wesfarmers at the moment looks fully valued but from a charting perspective it has come back to a well-trodden support level. You will notice that over the last two years, WES has traded within a range between about $41 and $45. It has momentarily moved beyond these levels of course, but in the absence of a sudden breakdown towards $40, we would expect WES to find support here again and head back up towards the upper end of this recent trading band.

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Michael Gable is managing Director of Fairmont Equities (www.fairmontequities.com)

Michael assists investors to achieve their goals by providing advice ranging from short term trading to longer term portfolio management, deals in all ASX listed securities and specialises in covered call writing to help long term investors protect their share portfolios and generate additional income.

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

Michael Gable is an Authorised Representative (No. 376892) and Fairmont Equities Pty Ltd is a Corporate Authorised Representative (No. 444397) of Novus Capital Limited (AFS Licence No. 238168). 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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