MainStInvesting

Call me Crazy - Coal looking interesting here

NYSE:ACI   ARCH COAL INC
165 2 2
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.
mojeauxgrey
2 years ago
"CALL ME CRAZY"
Strange name but I guess it'll do.Ok Crazy.

Looks like a Teacup at the end there that's already broken the trigger point. The whole Coal market (KOL) looks like it's been consolidating so it looks like a low risk bet.
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MainStInvesting PRO mojeauxgrey
2 years ago
Haha. The "Crazy" part comes from a lot of feedback I've received anytime I suggest a long setup in any sector that has been hated (recently natural resources). So the name may not have been the best, but there are a few folks out there who know I meant it for them :)
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