Today we had high volatility ..why is this important? We always have high volatility at MAJOR TURNING POINTS. Today we had a high of $8.24 and a low of $7.75...quite a variation of almost 50c on $7.75.. This is Very High Volatility versus normal price movement of WHC and relative to the market volatility and the sector volatility... it was clearly abnormal volatility.
This high "upward volatility" suggests a very strong upward move from here....in line with the reverse Head and Shoulders...and the remix to 70% met coal and 30% thermal coal...showing an expected major profit increase driving up the value of the equity..."The key is major potential marginal improvement in profits relative to the recently added assets"
In the longer term there is a well known market phenomenon. The Price of the shares follows the direction of the profits ..If the Economics of the company are good and the profits rise then the share price rises if the economics of the business are bad then a reversal in profits drives down the share price..."All the present evidence points to a strong rise in profits and cash flow for WHC." The conclusion is that the technical signs for an excellent increase in the price of WHC were shown clearly in the price action today. All the Best to All.
WHC Price at posting:
$7.88 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)