Check out these stocks on my radar screen. There might be a few more bullish candidates here: BID, PFE, CYH, plus these utilities: OGE, NST, LNT, CNL.
NEW BULLISH Plays
Arch Coal Inc. - ACI - close: 34.26 change: +0.88
Stop Loss: 31.95
Target(s): 39.50, 42.50
Current Gain/Loss: unopened
Time Frame: 8 to 10 weeks
New Positions: Yes, see trigger
Why We Like It:
As oil rises investors start looking at other energy sources as well. Coal demand is still rising as well. Meanwhile shares of ACI are poised to breakout from their two-month consolidation. The stock is testing resistance right now. I am suggesting a trigger to open bullish positions at $34.75. If triggered we'll use a stop loss at $31.95. Our multi-week targets are $39.50 and $42.50.
FYI: The Point & Figure chart for ACI is bullish with a $40 target.
Trigger @ 34.75
Suggested Position: Buy ACI stock @ 34.75
- or -
Buy the April $35 calls (ACI1116D35) current ask $1.57
Entry on March 3 at $xx.xx
Earnings Date 04/19/11 (unconfirmed)
Average Daily Volume: 3.4 million
Listed on March 2nd, 2010