Coal In The Stocking:
Coal has been despised for some time now and I can still remember when the KOL used to trade, less than two years ago. The writing was on the wall when firms like Blackrock and the New York State Pension fund among others said they would be reducing or doing away altogether with the commodity. Not surprisingly names within went on to huge rallies not long after the fund stopped trading in mid-December 2020. For example, BTU near the end of 2020 traded below $1, not a typo, and today it trades with a 24 handle. CEIX traded with a 3 handle near the conclusion of 2020 and traveled above the round 40 number. ARCH is now 17% off highs made on 3/7 and looks to be moving toward the 125 area which was the scene of a bull flag breakout on 3/2, which would align with a touch of the rising 50 day SMA. The initial time that happens after a breakout is often a good entry point. Below is the chart of AMR which is showing good relative strength as intraday it touched a multi-year high. It was a failed break above a bull flag but monitor the area in the near term as it still can be taken out.