WES went nowhere between 2013-2019 as it tracked sideways in a narrow band. Since then it has risen about 110% in a rising price channel. After peaking at $66.50 price has fallen back to $56 from where it bounced slightly next week. I has been making higher weekly troughs and peak prior to the recent pullback – although that pullback wasn’t sustained enough to be a technical downtrend. So, by definition, price remains in an uptrend. Elliott Wave (albeit unclear) seems to suggest the recent peak was the top of Wave 3 and the current fall could be a short Wave 4. The recent peak was very close to 161.8% (Fibonacci) of the rise of Wave 1, which is where theory says the fall into W4 should start.

Two views. Price will stay in its price channel and head back up to make a new high, or it will hold above the lower channel boundary (a support line) but eventually see more selling pressure and fall through to make a deeper Wave 4 low. The following Wave 5 would be expected to make new highs above $66.

I’d like to see price move up for a couple of weeks from the current level and make a ‘move to the high side’ – that’s a bar that has its entire range above the bar that made the recent low. A weekly chart would be a stronger buy signal than the daily (which made that high side move on Wednesday).

The daily chart has been making higher troughs and peaks since the low and that’s positive. Buying volume was higher last Friday but has fallen off this week and the last 2 days candles suggest indecision – so I wouldn’t be surprised to see price fall back to that lower rising price channel boundary today or Monday (and then move up again).

Dividend only 2.4% and went ex on the 1st of September. PE 27

WES 24Sept21


Robert Norman

Phone: 0428 346 951
Email: robert@sharecharting.com.au

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