Further Downside For Wesfarmers

This story features WESFARMERS LIMITED, and other companies. For more info SHARE ANALYSIS: WES

By Michael Gable 

Last week saw a couple of big name stocks disappoint at their AGM's – Wesfarmers ((WES)) and AMP ((AMP)). We warned about Wesfarmers earlier this year and advised to sell into any rallies. We have a chart in today's report to remind you of our downside targets. We also warned about AMP two weeks ago and although it has now fallen to our target support levels, it is likely to remain weak for a while.
 

We have previously warned about WES coming under threat soon from a resurgent Woolworths and increased competition. With a chart showing that it can't rally in the good times, it was vulnerable to bad news and likely to take a big hit. This has finally occurred with WES suffering a huge sell-off in the last couple of weeks. There is a bit of support at current levels and this means that a short-term bounce is a chance to sell into it. Once support breaks here, we are looking at WES hitting our previously mentioned downside target of $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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