I always seek to find opportunities where TA and FA align - such as this.
TA shows a clear consolidation pattern as a falling wedge. One of my fav patterns to trade, and usually indicates a reversal.
FA the consolidation in a falling pattern makes sense. The market was ahead of itself, coal sales were priced in (at least in part), hence from the highs last year we have seen a steady drift down as the market lost interest and at times patience. Lets remember how short term and immediate the market attitude is these days.
From the TA and FA together I would anticipate coal sales to be forthcoming any time within the next ~8 wks, Quite likely we'll see a false breakout before this, only to retest then head higher on confirmed sales.
Risk? Conspiracy theories aside, if I was seeking to attempt a takeover of CKA and had any influence over SGE, I would seek to prevent or delay barges as long as possible before making the attempt. (I would not do this - hypothetical).
That's what I read from the current info we have.
CKA Price at posting:
14.0¢ Sentiment: Buy Disclosure: Held
