Wesfarmers have reach all time highs and due a correction
- RSI divergence indicating SELL
- Buy @ $58 - $60 range
- This would be a high probability trade to gain for Short Term Trade
(XDJ): CONSUMER DISCRETIONARY
(ASX): WES - WESFARMERS LIMITED || March 12, 2024
Master of Elliott Wave Analysis: Shane Hua (CEWA-M).
(Left chart): The broader context (1D chart) reveals that a previous wave 2-red has concluded, touching a low at 46.64, initiating wave 3-red to propel WES further upward. Upon closer examination of wave 3, I've counted waves ((i))...
WES is good stock. Trending up. All 5/10/20/60 MAs are in line to build the Wave. MACD is above 0. A strong and positive wave which hopefully will bring Santa to US.
Uptrend
Pullback has been completed after this good bullish candle and everything is ready for a good rally toward next target.
I suppose around 48 can be a good SL for it.
A closing above 47.75 will give a breakout above inverse head and shoulder neckline, which opens up pattern targets of 54.
Keep a stop loss below 45.80 on daily closing basis.
Stepping back to look at a long term chart of the ASX200, S&P500 and ASX.WES (Wesfarmers) over 30 years.
It's very telling seeing the higher % gains in the US indice over the ASX indice.
More telling is seeing ASX.WES outperform the indices due to significant reform and expansion of the company via acquisitions and growth.
WES has buyers lurking in the shadows, each one a little higher. However we haven’t really seen any push through supply so far.
Possibly this entry is a week or two too early, like everything else. buy at 59.25 s/l 58.10
No significant highs to impede, except 61.30.
Let’s see what January holds.
Text me if you have any questions/comments for me.
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WES
- Previous analysis was done on 1 Sep (red arrow) -> suggested waiting for a series of HHs and HLs
- Since then, the stock tested the $54 support and has successfully broken through the short- and mid-term resistances
- HHs and HLs are starting to form, and this is good
- The stock is testing the $60...
WES
- Previous analysis was done on 30 Aug -> suggested to wait for price recovery above the short-term resistance before any entry
- I also mentioned that any further drop in price will constitute a Structure Break
- Stock is currently trading at the 58 support levels
- Traders should execute their Stops once certain pre-determined prices are...
WES
- Previous analysis was done last week -> suggested to wait for price recovery to 66 levels before any entry
- Price did not recover but instead continues to drop and break the mid-term support
- Any further drop in price will constitute a Structure Break
- Strategy-to-buy (DYOR) – Suggest waiting for price to recover above the short-term resistance
