WHC Chart, page-511

Research my friend...

While I'm mainly out of the stock now (I was very fortunate and exited near the peak at $3.16, which doesn't happen often), I think there is likely more upside, but the volatility and swings were getting to me, as I originally chose the share because of the unbroken trend, which dipped when the mad sellers lost their collective marbles and just dumped stock. If they picked up a load of shares earlier this year at 42c or so, they could sell down all the way to $2 and still make a healthy profit, so they don't seem to care about losing money on selling, just taking opportunities to dump on it on up days like today. This totally suppressed upward share price moves and felt like manipulation, even though it was probably just opportunistic sellers / traders.

Could it go to $4-5? I guess so, it all depends on the demand in the steel market. The other reason I exited was the lack of diversification as Soho pointed out. This is great for the story from Feb-Oct 2016, but it is a liability in some ways as coking coal is so linked to steel/nickel etc. primarily. Steel demand this time seems to have come out of India and Europe, China steel demand is pretty low compared to previous years, and not slated to grow much in 2017.

I'd get a bit diversified and not rely too heavily just on this one stock as while they have a great product (and the weaker the AUD the better for exporters like WHC), the downside exposure is there. BHP/S32 are probably other commodity stocks worth holding that I wish I'd bought back earlier in the year, take a look at their charts. They drive companies like WHC also.

Spread your risk.