BOTTOM LINE: WHL is recovering within its major bear trend.
WHL is currently ranging between 6,785cps and 5,855cps. A move through 6,785cps could see WHL retest the major resistance trendline of its bear trend (blue bold trend-line), but note that further upside may be curbed by that trend-line. Failing this, a positive breakout would be confirmed above 7,680cps.
A neutral long could be initiated through 6,785cps, revised once the major trend-line is tested, and then increased above 7,680cps on continued upside. Gains to 9,650cps could then follow.
A reversal through 5,855cps would extend the current bear trend. In this case, go short below 5,225ps, with the target situated at 4,300cps.
Technical Analyst, Sharenet
Moxima has a B.Comm Finance from the University of South Africa and is a certified Chartered Market Technician Level 2, currently completing Level 3. She has been a technical analyst for 10 years, working for BJM, Noah Financial Innovation and for Standard Bank as part of the Research Team in the Treasury Division of CIB. She now runs her own business, The Money Hub, and consults for Sharenet. Moxima has been rated as one of the top 5 technical analysts in South Africa and outperformed the market during the recent recession. She regularly makes an appearance as a guest on CNBC Africa and writes often for Finweek and Sharenet’s Views.