WES.AX closes below its opening price unable to hold early session gains
Wesfarmers Ltd (WES.AX) Technical Analysis Report for Sep 14, 2018
Moving lower for the 2nd day in a row, WES.AX finished the week -1.89% lower at 50.42 after losing A$0.31 (-0.61%) today on low volume. Today's closing price of 50.42 marks the lowest close since August 13th. Trading A$0.55 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 50.68, the share confirms its breakout through the prior session's low having traded A$0.31 below it intraday. Ending with a weak close near the low of the day sets a bearish note for the next session.
Friday's trading range was A$0.83 (1.64%), that's slightly above last trading month's daily average range of A$0.74. 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 50.30. Unable to break through the key technical resistance level at 51.04, the market closed below it after spiking as high as 51.20 during the day. The failure to close above the resistance could increase that levels importance as resistance going forward.
Though Wesfarmers Ltd is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive. WES.AX broke below the 50-day moving average at 50.49 today for the first time since April 11th.
Further selling could move prices lower should the market test August's close-by low at 49.24.
While classical technical analysis indicates a slightly bearish sentiment for the next trading day, our quantitative statistics show a different picture being bullish.
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