Many of the leading coal stocks traded lower at the start of the session yesterday. It is important to note that the coal sector remains in a confirmed downtrend. This sector has been extremely weak since topping out in April 2011. Many traders should remember, the Chinese slowdown has had a direct effect on this industry group. The highly followed Shanghai Index (China) recently made a fresh new three-year low. This is just another negative for the coal stock sector.
Yesterday, Peabody Energy Corp (NYSE:BTU) traded lower by 0.45 cents to $22.92 a share. This stock is considered to be the leading stock in the sector. Short term traders should watch for intra-day support around the $22.50, and $22.00 levels. Some other leading coal equities that declined lower include Market Vectors-Coal ETF (NYSEARCA:KOL), Arch Coal Inc (NYSE:ACI), and James River Coal Company (NASDAQ:JRCC).