Wesfarmers Limited reaches an interest point of entry, showing a good potential.

The company owns retail chains, operates mines, writes insurances, manufactures and distributes industrial products, manufactures fertilizers and chemicals, and distributes liquefied petroleum gas and medical and industrial gases.

The company currently is trading 15 times earnings per share full year estimates, according to Thomson Reuters’ consensus. In add the company is valued 0.67 times its turnover for this financial year.

Graphically, the share is testing AUD 28.66 support in daily data, and is close to the support in weekly data. Moving averages 50 and 100 days are flat, remarking the neutral trend in mid and long-term. For this reason we suggest a long position in order to reach the first target of AUD 31. A stop-loss will be placed below support in weekly data, in order to cover the position.