Technicals | Feb 14 2023
This story features WHITEHAVEN COAL LIMITED. For more info SHARE ANALYSIS: WHC
By Michael Gable
US markets have spent the past week easing back in an orderly way as head into Tuesday night's CPI release.
The Australian market has pulled back a bit more these past few days as we expected because of its overbought nature.
Due to these consolidations occurring, we don't have many buying opportunities at this point in time, but we are seeing some stocks start to consolidate and provide potential set-ups for the next round of opportunities around the corner.
This week's charting section looks at Whitehaven Coal ((WHC)).
After peaking in October, we can see that WHC then corrected against the prior rally by trading sideways in a range.
Last Friday, it briefly broke under the November low before quickly rebounding on strong volume (circled). This "doji" candlestick on the chart is a classic reversal sign and we may have seen a "false break" with WHC.
We will know if this is the case if WHC can remain above Friday's low for the next few days.
If this does indeed prove to be a false break, then we should end up with a powerful rally that may take WHC back up towards $11. Current levels are therefore a buying opportunity where initial stops can be placed under Friday's low.
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Michael Gable is managing Director of Fairmont Equities (www.fairmontequities.com)
Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services.
Michael is RG146 Accredited and holds the following formal qualifications:
• Bachelor of Engineering, Hons. (University of Sydney)
• Bachelor of Commerce (University of Sydney)
• Diploma of Mortgage Lending (Finsia)
• Diploma of Financial Services [Financial Planning] (Finsia)
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2
Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.
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For more info SHARE ANALYSIS: WHC - WHITEHAVEN COAL LIMITED