Westpac Banking Corp (ASX:WBC) HEFFX Highlights

Westpac Banking Corp (ASX:WBC) HEFFX Highlights

Westpac Banking Corp (ASX:WBC) HEFFX Highlights

  • About 1,000 staff have been let go from Westpac over the past two years as a result of technological advancements such as automation; however CEO Brian Hartzer sees a silver lining, telling a House of Representatives committee his bank is also witnessing new jobs being created as a result of technology.
  • “It’s the case that customers are voting with their feet and with their plastic cards, and they’re walking into branches less often to make cash deposits and cash withdrawals. So our branch network size and staffing reflects that,” Hartzer told the Standing Committee on Economics on Wednesday.
  • Hartzer conceded there was no question that technology is having an effect on jobs, but called the hype around the topic “overdone”.
  • “I personally think the impact of technology will be more about aspects of jobs than about whole jobs. A lot of the technology is really about replacing the parts of people’s jobs they don’t really enjoy — you know, keying data in or performing manual tasks,” he explained.

Westpac Banking Corporation is a banking organization. The Company provides a range of banking and financial services in markets, including consumer, business and institutional banking and wealth management services. The Company is engaged in the provision of financial services, including lending, deposit taking, payments services, investment portfolio management and advice, superannuation and funds management, insurance services, leasing finance, general finance, interest rate risk management and foreign exchange services. The Company’s segments include Consumer Bank, Business Bank, BT Financial Group (BTFG), Westpac Institutional Bank (WIB) and Westpac New Zealand. The Company has branches throughout Australia, New Zealand, Asia and in the Pacific region. The Company through its division offers its services under various brands, such as Westpac, St.George, BankSA, Bank of Melbourne and RAMS brands.

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are ranging.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 31.96.

The projected upper bound is: 34.23.

The projected lower bound is: 32.67.

The projected closing price is: 33.45.

WESTPAC FPO closed up 0.270 at 33.420. Volume was 24% below average (neutral) and Bollinger Bands were 21% wider than normal.

Open        High          Low           Close         Volume
33.210      33.460      33.160      33.420      4,334,724

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

Moving Averages: 10-period      50-period     200-period
Close:                       32.55             31.93              32.46
Volatility:                11                    16                    20
Volume:                  4,226,096      4,618,571      5,947,839

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

WESTPAC FPO is currently 3.0% above 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 moderate flows of volume into WBC.AX (mildly bullish). Our trend forecasting oscillators are currently bullish on WBC.AX and have had this outlook for the last 16 periods. Our momentum oscillator is currently indicating that WBC.AX is currently in an overbought condition.

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 96.2458. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 12 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 72.32. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 92 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 9 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 24 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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