“Whitehaven shares look to be forming a primary uptrend now, with the weekly RSI showing a stock that is technically overbought, but that that is not signalling yet a meaningful slowdown in momentum,” Rodda says.
“WHC shares probably remain highly tied to the budding energy crisis now and any further upside in coal prices, and in the short-term, risk-reward appears skewed to the downside given the stock’s overbought technicals.
“A re-test of previous price resistance now support at around $2.50 may indicate whether the stock’s longer term uptrend remains in play.”
WHC was down 2.5% in late arvo trade.
Iron ore miners up as Materials ekes out small gain
In the mid cap space, +$1bn market cap lithium hopeful AVZ Minerals (ASX:AVZ) led the winners after securing a “cornerstone investor” for its Manono development in the DRC.
Private Chinese company CATH will pay US$240 million cash for an initial 24% equity stake in the project.
“Proceeds from the transaction will fund a majority of the total project financing required, whilst AVZ will retain a controlling 51% interest in the Manono Project post-completion of the transaction and its position as lead developer of the Manono Project,” the company says.
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