Wesfarmers Limited (WES.ASX)

12 June 2018

Technical Summary: Over the last 5 years the stock of WES has been trading in the tightest trading range for a stock that I have seen since I have done this technical analysis. The stock has simply oscillated between a low of $37 per share to the highs that we are at now at around $47 per share. At the current juncture the stock is clearly overextended. Investors that are looking to buy would like to see a consolidation in the stock. With the stock trading at the extremities of its 5 year trading range the real question for investors is whether we will be looking at another pull back to the mean or a breakout to new highs and the potential for a new trend. At the moment it is difficult to decide. We would like to see some consolidation in the price and a contraction in volume before ideally the stock would setup for a breakout.

Are we setting up for the breakout that long term shareholders of WES have been waiting for? or will this be a return to the trading range?

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