Here’s the trade on Peabody Energy ($BTU) (March 02, 2022)
BTU
I want to look at Peabody ( NYSE: BTU ) because this is a really, really solid pattern, it is a really nice cup and handle pattern. There is the cup and then this is the handle right here and we finally got a blastoff.
The issue is, frankly, this has been looking good for a while, it really has. I made a mistake and bought a little too soon here, it’s still a darn good trade, but I bought a little too soon here, I think it was more up here. And the reason was, I like the moving average crossover but I wasn’t really keen on how far above this price was from these key moving averages, it’s up almost 60 percent.
We got a little breakout here, which is fine. High volume, I think that is the time to go, right? But then, of course, as soon as you think that is the case the stock comes back around and breaks your heart, so it needed a little more room. I think this thing here was actually good, it was healthy for the stock.
This washout here, it doesn’t mean anything here, it doesn’t, it doesn’t mean anything. Now, back here it did, you think, okay, we will turn out the lights, the party is over, institutions are selling. And then the very next day or two, when it starts doing this, you realize, no, institutions weren’t selling. If they were selling this wouldn’t be back up higher than it was just a few days ago.
So what this really did was, it just kind of cleared out all the weak hands, now I think this stock is ready to go again. And this could very easily run up to 25.00 and my bet is 30.00. I like this and this is another thing, I like it on the weekly chart. I haven’t seen stocks that get up there and then just start falling. I have seen them kind of oscillate around here a bit but then ultimately they start moving higher.
Anyway, I like this, I hope you do, Peabody ( NYSE: BTU ), more than a character on Rocky and Bullwinkle.
Free Chart