Is Coal Heating Up?
One of the worst performing industry groups in 2012 has been the coal sector. This sector remains in a confirmed downtrend at this time by trading well below the important daily chart 50, and 200 moving averages. Please note, while this sector has been extremely weak throughout the year many leading coal stocks are trading positive today. The only reason that we want to know about this bounce is because the Dow Jones industrial Average and most every other stock index is declining lower by more than 1.0 percent. Believe it or not, the coal sector is actually bucking the trend today and showing intra-day relative strength.
Alpha Natural Resources Inc (NYSE:ANR) is considered to be one of the leading stocks in the coal sector. Today, ANR stock is trading higher by 0.44 cents to $13.61 a share. Short term traders should watch for intra-day resistance around the $13.75, and $14.00 levels.
Some other leading coal stocks that are trading higher include Peabody Energy Corporation (NYSE:BTU), Arch Coal Inc (NYSE:ACI), and James River Coal Company (NASDAQ:JRCC). This sector still looks very poor on the daily charts. Currently this bounce should be viewed as nothing more than a dead cat bounce as nothing goes straight down in the market.