Whitehaven Coal is an Australian coal producer based in NSW and Queensland.
“There are some obvious appeals to this business,” Michael said. “They produce so much cash that they need to buy back their shares, there are low barriers to entry because it is unfashionable to invest in new coal mines, and demand for coal will stay robust as the global economy looks to bounce back in 2024.
“The share price spiked last year on the back of high coal prices but it has since come back and many in the market have given up on WHC.
“However, the chart is showing that a low is probably in place now and we should expect some more upside again.
“WHC had a couple of strong weeks up in early June.
“It then followed that up with a sideways consolidation (circled) instead of being sold down like on prior occasions in 2023.
“A recent push back above $7 indicates that the WHC is commencing a new uptrend.
“In the short term we expect WHC to at least get back into the $8 region,” Michael said.
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