Coal prices have lower to go

Observe the gravitational pull of that 200 week moving average.

That’s the mellow, flowing line in the chart below featuring the price of Australian coal company, Whitehaven Coal (WHC.AX).

It’s somewhat summoning the price of Whitehaven Coal down towards $4, as I mused in this post 2 months ago.

https://robzdravevski.com/2023/02/12/the-wickedness-of-the-rally-in-coal-stocks/

Coal was one of the commodities which featured in this 2022 post that warned of various ‘bubbles’ that I was observing.

Incidentally, amidst any parabolic fervour is also when corporates should be putting the value of their inflated ‘currency’ (their equity price) to some use.

https://robzdravevski.com/2022/08/31/bubbles-natural-gas-lng-coal-and-lithium/

Sometimes speculators have an aversion to locking in gains from such parabolic fortuitousness because they fear paying ‘too much tax’.

It is no wonder than mean reversion helps sorts any tax concerns, to the point when you won’t have a tax problem at all.

April 13, 2023

by Rob Zdravevski

rob@karriasset.com.au