strong bullish chart emerging, page-2

Technically a significant level for me is 5.2c. Resistance in March 2011, broke the level in September 2011 and then we saw good consolidation as it turned into support. I actually topped up at 5.2 trusting that the level will hold but it didn't. It is now resistance (however I am not entirely convinced it is strong).

Fundamentally we are seeking the sp price creep up to 5.2c as crude oil price increases. Crude oil inventories were down to -4.7m this week driving the price of oil up. Although this data has both positive and negative implications, it did help boost the markets this week (along with other comforting data).

I would expect to see the SP continue up to 5.2c (say 5c) and maybe see a bit of consolidation again until the NSAI report is released. Assuming the report is what we expect it to be, a clean break of 5.2c and we should see a new phase in trading of this SP (assuming all other economic variables stay constant - which is a very big assumption). Luckily, for us, WHN is not so closely tied with market conditions as other majors etc (one of the benefits of being a spec) so I am pretty comfortable with its current state.