ACI (Arch Coal Inc) is one of several coal stocks on my watchlist that may be poised for primary trend reversal following a powerful bear market in the coal related stocks. ACI will trigger a long entry on any move over 3.25, which will have clearly taken the stock above both this bullish falling wedge pattern as well as this resistance zone. Suggested stops using a 3:1 R/R based on one’s preferred target(s). Also note that I currently have three likely profit targets listed, T1–T3, along with the first decent resistance level, R1, which comes in around the 3.45.-3.48 area. That level could also be used as an early target for those preferring to book quick profits while there are also two additional resistance levels above T3 which may be added as additional price targets, depending on how both ACI and the coal sector perform going forward. click here to view the live, annotated daily chart of ACI
As recently mentioned in the ANR long trade entry post (which can be viewed here), I’ve been monitoring some potentially bullish developments on the coal sector and have about a half-dozen coal stocks on my watchlist at this time. Some of those charts need a little more work while there are a few others that have either recently broken out or are getting close and as such, will be added as Trade Setups and/or Active Trades soon.
Also keep in mind that although the coal sector, including the ETF KOL, appears to be carving out a potential bottom, it is still too early to officially declare that the bear market in the coal stocks has ended and as such, best to adjust your position size on these trade ideas accordingly, especially on some of the lower priced and more volatile coal stocks, should you decide to play the sector via individual stocks vs. the KOL ETF (which is not yet an Active Trade at this time).
ACI will be added as both a Long Trade Setup (a typical swing trade, with an expected holding period ranging from a couple of weeks to several months) as well as a Long-term Trade Setup (trend or investment trades with above average return potential and holding periods of typically 6-12 months or more).
2017-03-08T21:20:50-05:00Aug 13, 2014 4:17pm|Categories: Completed Trades - Long|Tags: ACI|Comments Off on ACI (Arch Coal) Long Trade Setup