$JSETGA - Thungela Resources: At An Interesting Juncture
Thungela has been a darling since listing, driven by the energy crisis that saw a sharp increase in coal prices.
I have overlayed the Newcastle coal futures to illustrate the relationship/correlation between Thungela and the futures coal prices.
From a technical perspective, the Elliott Wave Principle provides us a road map of what we can anticipate.
From the low of 2066 to the peak of 38249, the bull run unfolded in five waves for an impulse.
The correction to 19812 has been in three waves for a zigzag and wave (C) has broken down in a more recognizable five wave sequence than wave (A).
The 50% bear decline has bounced in the 50-61.8% Fibonacci retracement zone.
It is premature to call a bottom is in at 18912 but the MACD (not shown) has started to make higher lows giving a bullish convergence setup.
The coal futures are still pointing downwards making this a very interesting juncture.
I have overlayed the Newcastle coal futures to illustrate the relationship/correlation between Thungela and the futures coal prices.
From a technical perspective, the Elliott Wave Principle provides us a road map of what we can anticipate.
From the low of 2066 to the peak of 38249, the bull run unfolded in five waves for an impulse.
The correction to 19812 has been in three waves for a zigzag and wave (C) has broken down in a more recognizable five wave sequence than wave (A).
The 50% bear decline has bounced in the 50-61.8% Fibonacci retracement zone.
It is premature to call a bottom is in at 18912 but the MACD (not shown) has started to make higher lows giving a bullish convergence setup.
The coal futures are still pointing downwards making this a very interesting juncture.
