WES.AX breaks below prior session low
Wesfarmers Ltd (WES.AX) Technical Analysis Report for Jul 13, 2018
WES.AX ended the week -2.22% lower at 49.25 after losing A$0.24 (-0.48%) today. Closing below Thursday's low at 49.38, the market confirms its breakout through the prior session's low having traded A$0.33 below it intraday.
Friday's trading range was A$0.44 (0.89%), that's far below last trading month's daily average range of A$0.65. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being way below average.
Prices are trading close to a key support level at 48.83. Prices are trading close to the key resistance level at 49.73. After trading as low as 49.05 during the day, the share found support at the 20-day moving average at 49.10.
Although the stock is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive.
Buying could speed up should prices move above the close-by swing high at 49.73 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 48.83 where further sell stops might get activated.
While classical technical analysis indicates a neutral sentiment for the next trading day, our quantitative statistics show a different picture being bullish.