Here’s Scott following up on his $ARCH idea from Tuesday – May 26, 2022
ARCH SPY CEIX AMR
This is Scott with your Chart of the Day. I want to follow up with one of the coal stocks that I talked about on Tuesday, and that is Arch Resources ( NYSE: ARCH ).
As you may have seen we had a nice bounce in the SPY ( NYSEARCA: SPY ) today. But we also saw some pretty interesting strengths in coal stocks and Arch Resources ( NYSE: ARCH ) is one of them. On Tuesday I said that what I am looking for is a move through and a close above that 175.80 level, coming on higher than average volume.
What did we get today? We got a nice move through that level, higher than average volume. And this wasn’t the only coal stock that was catching the bid today. We also had CEIX ( NYSE: CEIX ) moving nicely on higher than average volume. AMR ( NYSE: AMR ) popping out here on higher than average volume.
And so this, in my opinion, is still a sector that you should be paying attention to. At this point, I would probably look for a pullback buy to the moving averages because this has clear support right around that 50-day moving average. So if you are lucky and it does come back watch for the buyers to kind of step in close to the moving averages here.
I just wanted to follow up and show you some of the things we are looking at over at stockmarketmentor.com.
Free Chart