Here’s your trade on Peabody ($BTU) (February 11, 2022)
BTU
I want to talk about Peabody Energy ( NYSE: BTU ) today. This is a stock that I just opened up as an active trade today for our members. This is what I am looking at, I’m going to make this real quick because guess what? When I am done doing this video I am going on vacation for a week.
I am looking at the weekly chart and I see $20.00 as a pretty doable target. If I look on a percentage basis, that’s over 15 percent from where it is right now. And in this market, 15 percent is a pretty good initial target. But the way coal stocks are going, I will leave all of the pejorative terms out, the folks that want to say nobody should be using any energy other than the sun or the wind. They want to get rid of coal, but I am sorry to burst your bubble, but it’s not going to happen any time soon. Frankly, it is just going to get more expensive.
That is really what we have got going on here. And like I said, I think 20.00 is a doable target but the way this stock is trading it just kind of feels to me like it is forming more of a cup (I am ignoring this downdraft as being anything meaningful), it is kind of forming a cup doing this. I am not predicting it, but if the stock kind of pulls back a little bit and all the while the 50 and the 200-day start moving up, then I think it could be in a position to blast right through 20.00 and keep going. We’ve seen this do this here, a deeper way, but we saw the same thing here. This does have that tendency, just to keep running through a pattern.
So that is really what I am looking at on Peabody ( NYSE: BTU ). And like I said, we’ve got this on our stock list now and we are following it as an active trade. And if you are kind of wondering what the heck we are doing, if you are having a hard time making money in the market, why don’t you check it out and see how it works for you?
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