Great Trades

Wednesday, January 04, 2006

BTU Breakout after Mine Tragedy

Despite last night's coal mining tragedy in West Virginia, coal stocks are rallying today after a gap down and early weakness as weak hands sold out. Peabody Energy Corp (BTU), the world's largest coal company, is currently breaking out over its all-time high of 86.95. Peabody provides more than 10% of all U.S. electricity.

The below chart shows the consolidation over the last few months under the 86.95 resistance. In October and December, BTU was turned back from this level. Today, it has broken out above this level, which should produce a nice rally in coming weeks.

posted by GreatTrades  # 1:26 PM

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