Wesfarmers Limited (WES.ASX)

30 January 2018

Technical Summary: All you need to know about the five year WES chart can be found by looking at the one year. This is because it is an extension of the five year. The stock has been stuck in a tight trading range from a low of $37 per share to highs of just over $45. Out of all of the charts we have done in the Technical Corner WES probably has the tightest range over a 5 year period. The stock currently trades towards the top end of this range and if you were a mean reversion trader it could be an opportunity to take profits. On a mean reversion basis the stock can be accumulated at around $40 per share. Traders should note that a meaningful break outside of this trading range, either to the upside of the downside could be viewed as a character change for the stock.

First time we have covered this name in the Technical Corner. Probably the tightest trading range we have seen

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