Shares of Alpha Natural Resources have been up strongly over the last few days on a number of items including traders discounting QE3, an improving outlook for coal supplies and natural gas inventories, and higher inflation expectations. I have detailed my thesis on coal here a few times and I will not go into here. However, I did want to highlight the recent performance of Alpha Natural Resources (ticker ANR, full disclosure- I own ANR in portfolios I manage and in my personal accounts), as the shares have broken above the 50-day moving with volume conviction. See the chart below.
Not only did it break the 50-day moving average, but the volume has come in higher than previous volume benchmarks. The next high volume benchmark day occurred on May 15th, when the shares traded down to $11.92 from the previous close of $13.16. I believe this range will serve as magnet for shares and is the next attraction point. In addition and depending on the time its takes to get there, the 200-day moving average is likely to converge around this price point.
Not only did it break the 50-day moving average, but the volume has come in higher than previous volume benchmarks. The next high volume benchmark day occurred on May 15th, when the shares traded down to $11.92 from the previous close of $13.16. I believe this range will serve as magnet for shares and is the next attraction point. In addition and depending on the time its takes to get there, the 200-day moving average is likely to converge around this price point.
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