Downside Risk Remains For Wesfarmers

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

By Michael Gable 

With reporting season mostly over for now, we can look back and see that it wasn't as bad as the market was expecting a few weeks ago. This means that when we start ignoring overseas and macro issues such as the price of oil, we are likely to start rising.

Today we provide an update on our target for Wesfarmers ((WES)).
 

We commented on WES on 22 December and suggested downside towards $34. The uptrend from 2009 had been broken and the stock was failing to get back above that line. The performance of WES in February has made us reiterate that negative view. Once again WES has failed at that $44 level and we have circled the two occasions in the last year that WES has been sold off very heavily from those levels. We still therefore maintain downside risk for WES towards $34.
 

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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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