Monday, December 30, 2013

Monday morning

WLT Daily Chart
Since our sweet southern4 was yappin' about Walter over the weekend I thought I would opine on the chart.  Coal in general is looking better and I hear news here and there that the POTUS may ease up on his beat down of this plentiful resource.  Supposedly some of his party are afraid that continued pressures to shrink/close the industry is hurting their election chances for 2014.

Clearly the stock has been strong for the past 2 weeks.  Friday it broke sharply higher on above average volume and closed near the high of the day.  This is also the first close above the 200 day sma since February.

The Trade
The stock could be purchased rhrn (right here right now) as long as the price is above the 200 day sma.  I would recommend a stop just below Thursday's intraday low of 15.52.  I would look for a test of 19.50 - 20.00.