Simon, I don't think the risks are horrid at all when buying a liquid share like WHL on support. If it breaks support, sell. Small loss. If it climbs, large gain. I would prefer to buy it on support than on a breakout.... when it breaks, do you chase the break, only to see it come back to test the old resistance, or do you wait for that test, only to miss the move completely and watch it run upwards? What if you buy a false break? Where is your stop? (probably right where mine is now, a lot closer to where I bought)
Your right - and it seems that Truworths and Massmart seems to have built up similar bases, but they now running horizontal in a descending band. I would not be surprised if that horizontal run crumbled once it met up with the upper descending resistance line. In fact I'd be sitting with my small R stop in a short position the day it bounced down.