I am creating this segment of my blog to cater to our kababayans living and working in Australia. Moving forward, aside from our posts about Singapore REITS and ETFs and select stocks from the NYSE and NASDAQ, I will now be adding and featuring stocks from the ASX. This is to help our kababayans in Australia who want to practice and learn more about stock investing but cannot go home to the Philippines right away to open an account and start investing in the PSE. Don’t get me wrong, I really want you to invest in the PSE since I really believe it’s time for Filipinos to earn from our own market! But while you are still there, I hope this helps serve as a reference point for your trades so you get to sharpen the saw and develop the skills needed when you start investing in the PSE.
As for me, the heart of every blog post remains the same. That wherever you are in the world, I really hope that you get to invest in the stock market and that you use the stock market to reach your goals of financial freedom. Whether it be in the ASX or the PSE, I really hope that you let your money work hard for you.
For this initial post covering the ASX, I will be featuring the technicals of Wespac Banking Corp, WBC. If you want to join us for Stock Smarts Australia, click this link. Looking forward to meet you!
Catch me in my live training events! (quick plug)
The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.
Stock Smarts Davao — October 20 – October 22, 2017
Stock Smarts Malaysia — November 4 – November 5, 2017
Stock Smarts Sydney, Australia — November 11 – November 12, 2017
Stock Smarts Qatar — November 16 – November 19, 2017
Stock Smarts Singapore — November 25 – November 26, 2017
Stock Smarts Manila — December 2, 3, 9, 10 & 16 , 2017
Stock Smarts Taiwan — December 21 – December 22, 2017
Stock Smarts Cagayan De Oro — January 13 – January 14, 2018
Stock Smarts London, United Kingdom — January 26 – 28, 2018
My first encounter with WBC was when I flew to New Zealand in 2015 and got exposed to how large their operations were on that side of the world. Fundamentally speaking, the stock has increased its earnings from 2012 to 2015 but it somehow started to slowdown by 2016. Also, looking at the first quarter of 2017, the earnings still look flat as compared to the same period of 2016. Let’s see if this also reflects in the charts.
If you are new to this blog, you know I love charts and for me it is one of the greatest equalisers for traders and investors a like to take advantage of the cycles in the market. If you look at the chart below, you can observe the following:
1. The stock is currently sideways with no strong trend dictating the progression of the stock.
2. The stock started going sideways after the support at 32.80 did not hold. The breakdown happened last May 2017.
3. Because it failed to hold 32.80, it shifted making it the new resistance.
4. With that drop from 32.80, WBC bounced last July and September 2017 to form a short term support at 30.70. We have a buy signal each time the stock successfully bounces from 30.70. This is for relatively quicker traders with shorter durations.
5. Given that the stock currently closed at 32.15 yesterday, it is relatively close to the resistance already. It would be prudent to avoid the stock first and just wait for it again to retrace back to 30.70.
6. The stronger resistance could be found at 35.45, so just in case the stock goes higher than 32.80, you can expect it to challenge 35.45
7. The stronger support can also be found at 29.5, please watch out for this price range as a landing spot should the stock correct and the support at 30.70 fail to hold.
Current tradable range for the stock is 30.70 to 32.80.
I hope this helps you in your trades! See you all in Stock Smarts Australia!