This morning, all of the leading coal stocks are catching a bid higher. This important energy sector has been beaten and trading lower since topping out in April 2011. Many traders and investors are looking for a bottom in the sector, however, any bounce should be viewed as temporary. Until the leading coal stocks can regain the important 50-day moving average this sector remains in a confirmed downtrend.
Peabody Energy Corporation (NYSE:BTU) is one of the leading stocks in the sector. BTU stock was upgraded today by an analyst at Goldman Sachs Group Inc (NYSE:GS). The stock is trading higher by $1.15 to $25.02 a share. Short-term traders should watch for intra-day resistance around the $25.50, and $26.00 levels. The daily chart of BTU still remains very weak trading below the important daily chart 50, and 200 moving averages.
Some of the other leading leading coal equities that are trading higher today include Patriot Coal Corporation (NYSE:PCX), Arch Coal Inc (NYSE:ACI), and Alpha Natural Resources Inc (NYSE:ANR). It is important to remember that despite the intra-day bounce in all of these leading stocks today, the trend remains down on the daily charts for the coal sector.