|This Trade Was Closed April 8, 2012|
Closing this trade as it has fallen below my stop level
Original Trade Post:
Shares of Coal companies like ANR have been in long term downtrends since Aug 2011. Competitive pricing of natural gas and stricter US domestic EPA requirements for future coal plants have led to the decline. I see some positive divergences between the Oct low and yesterday’s low, stochastics are tracing out a bullish divergence and violations of the lower bollinger band, are all telling me that the share price could move higher from here in the short term. Today a bullish engulfing reversal could have formed. I am targeting a quick move up to the 20 ema at 16.50, before price succumbs to the long term downtrend again.
Risk/reward = .50/1.25
- The Ticker: Anr
- The Trade: Buy at $15.25
- Target Price: $16.50
- Trade Opened: March 29, 2012
- Trade Closed: April 8, 2012
Chart courtesy Finviz. Click to open in larger window.
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