Wesfarmers is a diversified conglomerate with businesses in retail, resources, chemicals, energy, fertilisers, industrials, and safety products.
“The share price has fallen over the past several months as cost pressures build,” Michael said.
“The shares are now trading at a much more reasonable valuation.
“Price action also suggests that these prices should offer good support for the stock price. “Since the lows in February, the WES share price hasn’t made much progress.
“However, the lower points are getting higher and higher (diagonal line) as buyers are stepping in to buy the dips.
“Despite recent market weakness, WES has been holding up well and the trading range is starting to narrow here.
“I can see that $50 is a major resistance level.
“This means that once it can get above $50, it should then be able to go for a bit of a rally,” Michael said.
Wesfarmers Limited (WES)
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