Picking A Bottom For Westpac

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

By Michael Gable 

The market has had its relief rally as predicted, but the big question is whether it can continue higher or not. Most believe it will, however I am still cautious of our market taking another step back.

There are few opportunities however on the long side which include Challenger (CGF) and Paladin (PDN). Axiom Mining (AVQ) is a very interesting technical trade that could see a doubling of the share price, but its not for the faint hearted. I have also looked at possible downside targets for Westpac ((WBC)) and Fletcher Building (FBU).

Westpac

I spoke about the banks briefly last week and I covered off on my targets for ANZ. Here we look at WBC, and on the weekly chart we can firstly see the type of divergence with the RSI that led to the stock peaking around $26. There appears to be an obvious support level at $23. Also if we measure the 50% retracement of the May–October rally (which is where a stock can often retrace to), it also brings us back to $23. So $23 appears to be strong support, but an unlikely breach of that level can see it down towards $21. 

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Visit Michael Gable's website at  www.michaelgable.com.au/.

After leaving Macquarie Bank's Securities Group in 2008 after many years of service, Michael has gained a highly regarded reputation in the financial services industry. As a Private Client Adviser with Novus Capital, Michael has become a popular live commentator and analyst for Sky News Business Channel’s “Your Money, Your Call” program. He is also the author of the weekly stock market report “The Dynamic Investor”.

Michael assists investors to achieve their goals by providing advice ranging from short term trading to longer term portfolio management.

Michael 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 (Rep. No. 376892) of Novus Capital Limited AFSL 238168 ACN 006 711 995. Michael Gable and Novus Capital Limited, their associates and respective Directors and staff each declare that they, from time to time, may hold interests in securities and/or earn brokerage, fees, interest, or other benefits from products and services mentioned in this website. This website may contain unsolicited general information, without regard to any investor's individual objectives, financial situation or needs. It is not specific advice for any particular investor. Before making any decision about the information provided, you must consider the appropriateness of the information in this website or the Product Disclosure Statement (PDS) or Financial Services Guide (FSG), having regard to your objectives, financial situation and needs and consult your adviser. Any indicative information and assumptions used here are summarised and also may change without notice to you, particularly if based on past performance. Michael Gable and Novus Capital Limited believes that any information or advice (including any securities recommendation) contained in this website is accurate when issued but does not warrant its accuracy or reliability. Michael Gable and Novus Capital Limited are not obliged to update you if the information or its advice changes. Michael Gable and Novus Capital Limited and each of their respective officers, agents and employees exclude to the full extent permitted by law, all liability of any kind, in negligence, contract, under fiduciary duties or otherwise, for any loss or damage, whether direct, indirect, consequential or otherwise, whether foreseeable or not, to the extent arising from or in connection with this website.

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