SinoCoking Coal and Coke
An under-$10 stock in the energy complex that looks technically ready to surge higher is SinoCoking Coal and Coke (SCOK), which operates as a coal and coke producer in the People's Republic of China. This stock has been beaten down huge so far in 2011, with shares off by over 60%.
If you take a look at the chart for SinoCoking, you'll see that this stock has been stuck in a nasty downtrend since the stock of the year after it printed a higher of $14.37 a share. During that downtrend, the stock has done nothing but flash bearish technical signals, with shares making lower highs and lower lows repeatedly. That said, the stock just formed a perfect triple-bottom chart pattern at $3.60 a share and it has now started to move above its 50-day moving average of $4.34 a share.
Related: 7 Mining Stocks to WatchMarket players should watch for a breakout trade if SCOK can manage to trade above some near-term overhead resistance at $5 and then $5.54 a share on big volume. A sustained move above those levels on volume that's tracking in close to or well above its three-month average action of 96,000 shares would be bullish for the stock. You could buy this stock on any weakness and anticipate the breakout, or just wait for the breakout and then load up on some shares. I would use a stop just below the 50-day moving average of $4.34 a share in case this stock isn't ready to move up. If we do get the breakout, then this stock could easily make a monster spike back towards its 200-day moving average of $7.59 a share or possibly higher. I like that volume during the past two trading sessions leading into today was north of 136,000 shares.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV