NEW YORK (TheStreet) - Shares of Peabody Energy (BTU) have not performed well over the last five or six years under the dirty clouds that President Obama wants to clarify with new rules of the Clean Air Act, which became a focus on June 2.
On June 2, TheStreet's Deputy Managing Editor Carlton Wilkinson wrote, Coal Shares React Positively to EPA Emissions Rules, but shares of Peabody, the world's largest coal producer moved sideways at best for the remainder of the week.
On June 3, Wilkinson followed with, Coal Mulls Threat From EPA Emissions Reductions where he discussed the reactions from Wall Street analysts knowing that the Environmental Protection Agency proposes that power plants reduce carbon emissions by 30% by 2030.
On June 4, he wrote about another wrinkle to the story in, Peabody Faces Risk From 'Peaking' Coal Demand in China, which could put additional pressure on the stock despite the company's participation in developing a clean-burning technology.
All of this news has been playing havoc with Peabody shares for quite some time so let's take a look at daily and weekly charts for the stock and set "buy and trade" strategies for investors and traders.
Courtesy of MetaStock Xenith
The daily chart shows that Peabody Energy ($16.34) is oversold with the stock below its 21-day, 50-day and 200-day simple moving averages at $17.62, $17.53 and $17.82. The stock traded as low as $15.18 on March 20 and as high as $19.63 on May 12, crisscrossing these key moving averages.