How Will Coal Recover?
Coal still sits like a man on death row awaiting a call from the Governor. Who's going to make the call? It's a question I continue to grapple with as I know catching even anything close to the bottom on coal will produce tremendous upside, but I'm not looking for a big ride lower. I'm willing to miss 10% to the upside since I have no idea where the downside will finally end. Another 5%? 10%? 33%? 50%? I simply do not know.
When I pull a daily chart of Alpha Natural Resources (ANR), which would be my go-to high beta trade just ahead of a more conservative position in Peabody Energy (BTU), I just don't see anything measuring a downside target. The $7 level should act as psychological support, but it is sitting in another wedge that is leaning more bearish rather than bullish. This is causing me to again sit on my hands and keep my ANR position neutral....509 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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