ANR - Alpha Natural Resources

Parabolic decline from the peak at $67 to the low near $15 has left ANR ripe for a rebound. The last base of accumulation from $55-$32 broke in September and it cascaded into a rush for the exits and drove the stock to its low near $15. I suggest that $17.50 shouldn't be revisited if this new uptrend stays in place and that there is upside to fill some price gaps clearly visible on the chart. Gaps represent rapid clusters of orders on one side of the market and imply that people were aggressively opinionated at that price and discounting new information, therefore it carries more "weight" and importance to traders. Traders like to know where order flow will transact and gaps are an obvious target for that reality. I would estimate a choppy advance with deep corrections along the way to chop out the new buyers. That is just my sense. If you can see on the chart I have posted reactions to the gaps. By Technical Tim 2:04PM EST Oct 10, 2011

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