BOTTOM LINE: WHL is recovering after breaching its support trend-line dated back to 2011
Currently teetering on the second resistance trend-line, a move through 6,785cps could see WHL retest the major resistance trend-line of its primary bear trend. Note that further upside may be limited by that trendline – if not, a positive breakout would be confirmed above 7,680cps.
A neutral long could be initiated through 6,785cps, so revise the position once the major trendline is tested and then increase longs above 7,680cps on continued upside; gains to 9,650cps could then follow.
A reversal through 5,855cps would extend the current bear trend, so in that case, go short below 5,485cps, 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.