Coal Stocks - Short -Term Negative.
Time frame 4-8 weeks, although we saw some of that action occur today, so the time fram may actually be shorter.
Coal stocks have had great runs, and I don't believe the commodity top has burst yet - not by a long shot - but at this point we need the technicals to take a breather and that means corrections are sometimes in order.
I added three charts on MEE, CNX, ACI, and notations of some negatives which would make the case for a short sell. The most bearish going from top to bottom. Pollux Technicals believes this is just a correction that needs to occur in order to support longer term prices. The technicals are looking overbought, but it's waiting for the correction to occur that will be the bigger challenge. These are by no means the long-researched, balance sheet dug type of all out short, but rather a move back to neutral that can be exploited.
Take the profits when they hit - anywhere between 7-10% corrections should be strategically removed - meaning take 2/3 off at the 7-10% correction and another 1/3 off if it hits 10-12% correction.
Stop-Loss Targets:
ACI 77.10
MEE 96.10
CNX 121.10
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