Market players should also keep an eye on breakout stock play Alliance Resource Partners (ARLP - Get Report), a producer and marketer of coal, primarily to U.S. utilities and industrial users. This company operates nine underground mining complexes in Illinois, Indiana, Kentucky, Maryland and West Virginia.
As I write this, shares of Alliance Resource are surging above some previous overhead resistance at around $53.25 a share. This move marks an official breakout for the stock to new 52-week highs. Investors should now watch to see if the stock can close above $53.50 a share on above average three-month daily volume of around 98,000 shares. A move that demonstrates those strengths could mean that higher prices are in the cards in the near term.
In fact, it could mean Alliance is setting up to test its all-time high of $55.50 a share, which it hit in June 2008. A move above that level would be very bullish for this stock.
Alliance is not just an attractive breakout candidate it's also a great dividend stock play. Shares currently payout $3.24 a share and yield 6.10%, so you could capture some income and potentially more upside in this stock.
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