If you bought Whitehaven Coal 3 months ago, you’d be pretty happy. It’s up 36% from its June low.
For short term traders the Whitehaven chart now demands a bit of attention. There look to be a couple of possibilities:
- The negative outcome would be a break below support and the 20 day moving average around $1.875. This would give the chart the look of a double top and could see a deeper correction. Perhaps a chance to sell or (for value buyers) the opportunity to get set at lower prices
- A positive outcome would be the completion of a minor triangle or pennant formation. A break through pennant resistance could indicate another upside pop. The pennant support is not yet formed. This would require a 2nd trend low, at or not far under yesterday’s low. Short term buyers may consider buying off that support if it firms up.