When I last looked at WES on 21 May, it was trading at $43. At the time I wrote
“If the share price cannot quickly recover, then we are likely going to see a period of weakness for WES. There is support at the trend line at $42, then some larger support at $40. If that cannot hold, then $36-$37 is a possibility”.
Within a few weeks of that comment, WES traded as low as $36.73. Since bouncing off that level, we can see that the share price of WES started struggling again around $40 which now appears to be strong resistance. I would now expect to see WES dip under $37 again. From there, it will be interesting to see what the RSI does. A great little signal for going long is when you see a stock go to a new low but display divergence with the RSI. So if WES does breach the June low, then I will be watching it very closely for signs that it will be time to start buying again. Bear in mind also that WES will go ex dividend in August.
