Westfield’s shares have undergone a few iterations over the years, with Westfield Corporation now remaining a global retail property group. It has investments in the US and UK, and those two economies are showing signs of stability. This means that we should continue to see support for retail growth, which will in turn support the share price of Westfield Corporation. At first glance the share price appears to be going nowhere though, but it has actually been following a nice technical pattern.
After a great run in 2014, Westfield Corporation spent much of 2015 tracking sideways – which is a good performance considering the overall market had a horrible year. I have noticed that this price action was neatly range-bound within what appeared to be an ascending triangle. These ascending triangles are known as “continuation patterns”. This means that Westfield Corporation was merely taking a break from the overall uptrend. Often we will see a few attempts at breaking through resistance, which has also been observed. Last month it finally attempted, and succeeded in making an upside breakout. The probabilities from here indicate that Westfield Corporation should continue trending higher now and that the sub $10 levels are a thing of the past. If we extrapolate a target from the recent price action, we arrive at levels near $11.50. This also corresponds with most broker targets on the stock.
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