simple comparison of ASX:WES (Wesfarmers) against major indices.simple comparison of ASX:WES (Wesfarmers) against major indices.
Wesfarmers
WES | Price Discovery | Key Level | 21 EMA Visual Guide Today's analysis – WES – Consolidating below ATH resistance as the 21EMA coils price into its APEX.
Points to consider:
- Strong trend
- Key level (apex)
- Price discovery (blue-sky breakout)
- 21 EMA visual guide
- Oscillators above 50
WES trading in a clean and strong uptrend finding resistance upon retest of its all-time high.
Price is trading at a key level as support (21 EMA) and resistance converge, a break in either direction is imminent.
A rejection at the resistance level, price is likely to retrace to daily support.
Price breaking bullish will induce new all-time highs for WES as it enters price discovery mode.
Further price development will allow the 21 EMA to act as a visual guide assisting to determine the immediate direction of the market. Price trading above the EMA perceived bullish and below considered bearish.
RSI and stochastics trading above 50 validates strength and momentum in the immediate market; oscillators need to range above 50 to maintain the bullish bias.
Overall, in my opinion, a successful S/R flip retest of the current resistance level validates a long trade, utilising the 21 EMA to assist in trade management and defining risk.
If you’ve read this far - thank you for following my work!
And as always,
Focus on you, and the money will too!
WES Trading OpportunitiesLook for sells up at the 1.618 fib level. WES has been looking very strong so a pullback to some support is definitely going to happen sometime.
