Coal Mining Stocks Still Look Cooked
This morning, many of the leading coal mining stocks are catching a small bid higher. This important sector has been very weak throughout 2012. The important coal sector is severely oversold in the near term, therefore, a short term bounce is very possible. Unfortunately, all of the leading stocks in the coal sector remain in a confirmed down trend. If a trader simply looks at a chart of the Market Vectors-Coal ETF (NYSEARCA:KOL) you can clearly see that the price is trading below the important 50, and 200 daily chart moving averages. This puts the KOL chart in a weak technical position. Today, the KOL is trading higher by 0.21 cents to $32.19 a share. Short term traders can watch for intra-day resistance around the $32.50 area.
Some leading coal stocks that are trading higher today include Peabody Energy Corporation (NYSE:BTU), Arch Coal Inc (NYSE:ACI), and Patriot Coal Corporation (NYSE:PCX). All of these stocks are oversold on the daily chart, therefore, a short term bounce is very possible. The longer term trend is down on all of these stocks and this tells us that multi-day bounces are likely to be sold.