WHC may be providing a great buying opportunity. It had broken its two year downtrend line in November 2020, with high volume. The recent swing low has been an aggressive sell off, but it seems that its a retracement of this new Uptrend and the recent bounce with high volume suggests that the swing to the upside has begun. With strong volume and strong bullish...
Using the volume profile (VPVR), we can see confluence between the 2009 swing low and the bottom of "value". This immediately gives two reasons to signal that the tide may have turned in favor of the bulls.
The value high @ $3.845 lines up with the midpoint (50%) of the entire chart, which gives extra validity to that price level acting as significant high...
As the energy sector has been racked by the pandemic in 2020, I see strong opportunity of recovery in this sector strongly in 2021. Whitehaven Coal is my pick to rebound strongly as recently it broke the trend line and upward movement is expected.
With market valuation of about $1.6 billion, I would consider WHC as mid-cap and wild volatility is expected.
Bullish Confirmation Indications
1. WHC has broken out of the long term downward trendline with High Volume
2. Price Action have been impulsive which indicates that Bulls are in control.
I am a confident buyer between $1.285 - $1.175 Buy Zone which can give potentially a 70 % gain.
Please note these are my own notes for future reference, by no means trading...
Looking at WHC on a weekly chart
Price has come down into our buy zone
Price coming down into value low on VPVR and also sitting on the 786 fib
Internal indicators looking pretty good
All im waiting for is structure to come in on price
Potential 100% profit trade
Whitehaven Coal approaching key support level. Will it hold?
Fundamental is not looking good due to labour shortages and bushfire disruption.
It is below all moving averages and other technical indicators are showing it most likely to go lower towards the key support line of $2.49.
Not financial advice but If I was holding, it is time to sell and buy something else.
Energy Sector XEJ looking good.
Whitehaven Coal looking good too.
From a TA point of view:
Broken downward trendline
RSI and MACD rising
I like it even more once the stock price can close above the 50 MA.
Keep it on your watchlist!
WHC is yet again at it's all the time low, it's right outside of it's 2 standard deviation. Yes it's on a down ward trend on the daily and weekly, but we could see a C wave move from the Elliot theory to the upside this morning. Also, the ASX cloud be opening higher this morning, so we could see bullish movement for the energy sector. looking to buy above $3.84 to $4.
Due to the Energy sector of the ASX getting smashed, that could be from the oil rig count from WTI, could be from the DXY showing some strength and the oversees market showing indecision. However, how much can it go lower, this is why i'm looking at WHC. The reason i'm looking into WHC is because it's hit new month low, 52 week low and formed a bullish hammer on...