Westpac To Extend Weakness

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

By Michael Gable 

Our prediction of the end of the Australian market rally turning into some short term weakness is playing out with the market losing about 100 points in the last week. As expected, the banks have led this weakness, having lost the entitlement to the dividend. Our market is still on course to head towards support under 5400 for the S&P/ASX 200 Index. We have a look this week at Westpac Banking Corporation ((WBC)).
 

As previously flagged in the last few weeks, we anticipated a rally in the banks, followed by some weakness after the ex dividend date. That short-term weakness is playing out as expected and WBC appears to be on course to head to at least $32 here. The long term uptrend is still intact however. It is interesting to note that price action over the last year has been converging to a point. This means that we could expect a sharp move to develop at some stage. At this rate, we could be looking at the first quarter of calendar 2015 for that to eventuate. It is too early to predict the direction of that move however.
 

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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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