Discussing Hopping Back into Westmoreland Coal

• Posted by Greg Harmon
• on November 5th, 2014

I have seen many material companies take it hard as they moved lower, consolidated and then started higher. I have changed my view on them and bought things like Alcoa and USX. But I have been very vocal about one thing over the last 2 years that is not improving and that is coal. In fact I remind people occasionally on twitter that ‘Coal Still Sucks™’. But today I am buying a coal name.

All through the Coal Still Sucks™ era though there has been one name I have taken as an exception to the rule, Westmoreland Coal, $WLB. Westmoreland ran higher through 2014 until a peak in August. Since then it has pulled back over 50% of that run higher and has reversed back up. Currently it is pressing on the 50 day SMA and approaching the top of the Bollinger bands and the 100 day SMA. There is a range of possible resistance from 38.25 to 39.25 overhead and then it would target a move to 58.50 on an AB=CD pattern. The RSI is trending higher and the MACD is rising in support of more upside. The trigger is a move over 38.50.

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