Wesfarmers Ltd (ASX:WES) HEFFX Highlights

Wesfarmers Ltd (ASX:WES) HEFFX Highlights

Wesfarmers Ltd (ASX:WES) HEFFX Highlights

  • Wesfarmers’ incoming chief executive Rob Scott has signalled plans to take a fresh look at the portfolio of businesses owned by the Perth based conglomerate, which could see a “very different” company in 10 years’ time.
  • “The expectation of the board is that I look at everything with a fresh perspective,” Scott said in an interview with The Deal magazine in tomorrow’s Australian.
  • “I will be quite agnostic about what businesses we are in,” he said.
  • Scott takes over next month as chief executive from the long-serving Richard Goyder, whose time at the top included the controversial $19 billion takeover of Coles group in 2007 — launched two years after he took over as chief executive — and the $1bn sale of its insurance arm in 2014.

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: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are ranging.

 

By the way, prices are vulnerable to a correction towards 42.05.

The projected upper bound is: 43.83.

The projected lower bound is: 41.80.

The projected closing price is: 42.81.

WESFARMER FPO SE closed down -0.320 at 42.780. Volume was 16% below average (neutral) and Bollinger Bands were 62% wider than normal.

Open         High          Low          Close         Volume
43.100      43.190      42.550      42.780      1,629,802

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period     50-period     200-period
Close:                      42.35             41.79             42.14
Volatility:               9                     15                   17
Volume:                  1,751,549      1,925,912      2,154,413

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 is currently 1.5% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into WES.AX (mildly bullish). Our trend forecasting oscillators are currently bullish on WES.AX and have had this outlook for the last 5 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 70.2126. This is not an overbought or oversold reading. The last signal was a sell 0 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 64.67. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 81. This is not a topping or bottoming area. The last signal was a sell 0 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 10 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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