Call me Crazy - Coal looking interesting here
Follow up to this post - The daily chart did give a buy entry with the breakout over $4.50, however it was short lived and appears to be another false move. Broken support levels now suggest new lows will be seen in coal. Weekly chart also very bearish. I am still in the camp that the risk is mainly to upside in this sector, however as of now it's dead money and should just stay on watchlists. Short term trades on both the long and short side are doable if so inclined.
See original Notes below:
No long position yet, but coal is looking like it could be setting up for a move higher. Looking at charts of coal stocks over the past 5 years shows plenty of false breakouts and a reverse lower.
The difference here is we've recently seen a good amount of false breakdowns and continued basing without moving substantially lower. This sort of action demonstrates the possibility that selling has actually dried up.
RSI is shaping up on ACI for a move higher with price testing resistance on the symmetrical triangle. A breakout here isn't necessarily an immediate buy, but it certainly sets the stage to put coal stocks back on your long watch list to enter on pullbacks. I picked ACI as it's cheap on a relative basis and left for dead, so long term holdings should consider adding if a bottom is confirmed.
More to come in the near future as follow ups.
See original Notes below:
No long position yet, but coal is looking like it could be setting up for a move higher. Looking at charts of coal stocks over the past 5 years shows plenty of false breakouts and a reverse lower.
The difference here is we've recently seen a good amount of false breakdowns and continued basing without moving substantially lower. This sort of action demonstrates the possibility that selling has actually dried up.
RSI is shaping up on ACI for a move higher with price testing resistance on the symmetrical triangle. A breakout here isn't necessarily an immediate buy, but it certainly sets the stage to put coal stocks back on your long watch list to enter on pullbacks. I picked ACI as it's cheap on a relative basis and left for dead, so long term holdings should consider adding if a bottom is confirmed.
More to come in the near future as follow ups.