Corrective Period Ahead of Next Upleg for Walter Energy
Companies / Company Chart Analysis Sep 09, 2010 - 11:36 AM GMTBy: Mike_Paulenoff
Crazy volatility aside, the overall pattern in Walter Energy (NYSE: WLT) argues that all of the action off of the Sept 3 high at 78.74 represents a maturing corrective period which when complete should resolve itself into a new upleg that propels the stock above 79.00-80.00 towards 90.00. Next upleg should coincide with an upside breakout in the China equity indices, which would benefit this industry.
Only a decline that breaks and sustains beneath 72.50 will begin to compromise the pattern, while a decline that breaks 71.00 will invalidate the bullish scenario altogether.
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By Mike Paulenoff
Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.
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