Our ALGO engine triggered another buy signal for WFD at $8.51 into yesterday’s ASX close.
This additional technical buy signal references a “higher low” formation relative to the November lows near $8.15.
You're not a member! Trial today
Looking at the daily price chart, the gap from the takeover announcement in December has been filled.
This is a key development and suggests the current oversold conditions will likely be met with new buying interest in the near -term
Fundamentally, Unibail-Rodamco, the French retail giant which effected the takeover bid for WFD, has posted a 7.2% increase in 2017 earnings and expects similar growth in 2018.
Since a percentage of the $10.01 takeover price is script, it’s reasonable to expect WFD to get a boost from their result.
WFD was added to our Top 20 Model Portfolio on February 7th at $8.89 per share.
We prefer the long side of WFD at current levels with a medium-term upside target of $9.70.
Westfields
