Nearest Resistance: $8
Nearest Support: $6Catalyst: Romney Policies >>5 Oversold Stocks Ready to Bounce Another high-volume coal stock today is Arch Coal (ACI - Get Report), a stock that's up 13% itself this afternoon for the same politically driven reasons as ANR. Technically, I like ACI's bottoming action even more than Alpha's. This stock is forming an ascending triangle bottom right now, with resistance in place at $8. Essentially, $8 has been a sort of ceiling for shares, but uptrending support tells us that buyers still have some control over this stock at lower levels. As ACI bounces higher within its price pattern, the odds of a breakout above $8 are ratcheting higher. When the breakout above $8 happens, it makes sense to be a buyer. I wouldn't recommend being early on this trade, though; $8 has turned back the last three rallies for ACI, and it could do the same on this fourth try. That said, with shares at $7.76 as I write, it won't take long for a more definitive answer. If you decide to buy here, keep a tight stop.
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