Wesfarmers Ltd (ASX:WES) HEFFX Highlights

Wesfarmers Ltd (ASX:WES) HEFFX Highlights

Wesfarmers Ltd (ASX:WES) HEFFX Highlights

  • As the owner of Coles, Bunnings Warehouse, Kmart, Target and more, there is a lot to like about Wesfarmers. Over the past decade, Coles and Bunnings Warehouse have fired on all cylinders while Kmart and Target played their part.
  • According to Morningstar data, the company has achieved a compound total return of 6.4% per year over the past 10 years. Dividends are up, too, which makes it a tempting play for investors focused on income. At today’s prices, it is forecast to pay yearly dividends equivalent to 5% fully franked.
  • In coming years analysts expect Wesfarmers to continue its recent growth, with dividend increases and profit growth forecast for the next two years. Despite this, just three of the 15 analysts which follow Wesfarmers believe it is a buy at today’s levels, according to The Wall Street Journal.

Wesfarmers Limited is engaged in various business operations, such as supermarkets, liquor, hotels and convenience stores; home improvement; office supplies, and an industrials division with businesses in chemicals, energy and fertilizers, industrial and safety products and coal. The Company’s segments include Coles; Home Improvement; Department Stores, which includes Kmart and Target; Office Works; Industrials, which includes Resources, WIS and WesCEF, and Other. Coles is a supermarket retailer, which operates over 770 supermarkets. Bunnings is a retailer of home improvement and outdoor living products in Australia and New Zealand. Kmart is a retailer with approximately 210 stores throughout Australia and New Zealand. Target operates a network of over 300 stores and sells a range of products for the contemporary family, including apparel, homewares and general merchandise. Officeworks is a retailer and supplier of office products and solutions for home, business and education.

Overall, the bias in prices is: Downwards.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

The projected upper bound is: 42.22.

The projected lower bound is: 39.99.

The projected closing price is: 41.10.

WESFARMER FPO SE closed up 0.270 at 41.120. Volume was 46% below average (neutral) and Bollinger Bands were 54% narrower than normal.

Open      High      Low      Close      Volume
40.900      41.160       40.880      41.120      1,185,156

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period      50-period      200-period
Close:      40.81      40.73      42.03
Volatility:      10      17      18
Volume:      1,692,780      2,198,439      2,238,397

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

WESFARMER FPO SE gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
WESFARMER FPO SE is currently 2.2% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of WES.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on WES.AX and have had this outlook for the last 25 periods.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 67.8294. This is not an overbought or oversold reading. The last signal was a sell 2 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 55.34. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 44 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 163.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 11 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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