Can WBC Stock Overcome Obstacles?

Westpac Banking’s earnings have been falling by an average of -8.8% every year, according to Simplywall, a financial website that provides analysis and insights on stocks. This is lower than the average annual growth of 5% in the Banking industry. Westpac Banking’s revenues are decreasing at the rate of 0.7% per year. Westpac Banking has a return on equity of 8.8% and a net margin of 32.4%.

Moreover, Westpac Banking has AU$1,019.1 Billion in total assets and AU$ 72.7 Billion in total equity according to Simplywall. Westpac Banking has AU$ 676.4 Billion in total deposits and AU$ 749.9 Billion in total loans, with a Net Interest Margin of 1.9%. It has not set aside enough money for bad loans, which make up 1% of its total loans. The bank has AU$168.7 Billion in cash and short-term investments.

The market capitalization of WBC stock is AU$75.19 Billion and the total revenue is AU$19.79 Billion. This is based on the data from Simplywall, a financial website that provides analysis and insights on stocks. The stock’s basic EPS is AU$1.83 and the price-to-earnings ratio is 12.65.

Moreover, the average volume is 6.363 Million and the current volume is 5.446 Million, which is lower than the average volume. The stock performed well this week, as it rose by 2.9%, and it has increased by 7.8% in the past one year.

Westpac: Technical Analysis in the 1-D Time Frame

The price action shows that the Westpac (ASX: WBC) price has been in a downtrend for almost 5 months, falling from $24 to $20, which is a 17% drop. It made lower lows and lower highs. From the $20 support level, the price has reversed into an uptrend, making higher highs and higher lows. It has risen by 9% since June 7th and is currently trading at $21.46 (press time).

However, the previous price pattern suggests that the price has been forming an ascending broadening wedge pattern. This pattern is usually bearish, meaning that the price might go up a little more in the short term, but then it will fall sharply in the long term. To break this pattern and continue rising, the price needs more buyers to overcome the upcoming resistance levels.

Westpac Stock Price Prediction: Can WBC Stock Overcome Obstacles?

Source: WBC.1D.ASX by TradingView

At the time of publishing, Westpac ( ASX: WBC ) price is trading above the 20, and the 50-day EMAs (exponential moving average), which are supporting the price trend. Hence, Westpac stock price is expected to move upwards, giving bullish signals over the daily time frame chart.

The current value of RSI is 56.56 points. The 14 SMA is slightly above the median line at 54.28 points which indicates that the price is bullish as the RSI took support on 14SMA and is headed upwards.

The MACD line at 0.084 and signal line at 0.060 are above the zero line and a bullish crossover was observed. Hence, Westpac stock price prediction suggests the stock price is bullish.

Summary

Westpac stock price shows that the investors and traders of the stock are bullish according to the 1D time frame. The price action shows a bullish outlook at the time of publishing. The technical parameters of the WBC stock price are also giving bullish signals. The major indicators MACD, RSI, and EMA are giving positive signals and imply that the uptrend may continue in Westpac Banking Corporation stock.

Technical Levels:

The nearest support: AU$20.61 and AU$20.00.
The nearest resistance: AU$21.91 and AU$22.66.

Disclaimer

In this article, the views and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.