W is For Westmoreland

• Posted by Greg Harmon
• on September 25th, 2012

Most people know that my mantra for at least the last 7 months has been, “Coal Still Sucks.” You can see the whole series of articles on it below. Maybe I am just tired of coal stocks being down all the time, or maybe the change in the temperature is getting to me, but one name appears ready for a move on multiple timeframes, Westmoreland Coal, $WLB.

Westmoreland Coal, $WLB, Daily

on the daily chart above you can see the ‘W’ bottoming pattern with the next resistance up at 11.50 followed by 12.50. A move over 10.25 triggers a long entry. The Relative Strength Index (RSI) is bullish and along with the positive Moving Average Convergence Divergence indicator(MACD) both support more upside. But I said multiple timeframes. The weekly chart below shows price breaking the downtrend resistance and showing some signs of consolidation. It has a RSI that is trending higher and a MACD that is positive and rising. This timeframe adds resistance at 13.50 and then 18.20. Rounding out the scene the 3-box reversal Point and Figure chart (PnF) carries a price objective of 16.50. Maybe its time to get ready for winter.

Westmoreland Coal, $WLB, Weekly

Coal is Not Fueling This Market 2-14-12

Coal is Not Done Bottoming 3-22-12

Coal Still Sucks! 8-3-12

Arch Coal is Just the Best of a Bad Group 8-14-12

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