WES about to roll over again

by Michael Gable

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.


Disclaimer: Michael Gable is an Authorised Representative (No. 376892) and Fairmont Equities is a Corporate Authorised Representative (No. 444397) of Novus Capital Limited (AFS Licence No. 238168). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.

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