Patriot Coal Corp. ($PCX) has enjoyed an enormous bull trend since late August, as price has rallied from a low of $9.76 to recent highs of $29.20 – that’s a 199% gain! The good news? Another buying opportunity is calling..
PEMA Pull-Back Buy Signal
The PEMA Pull-Back system has fired a buy signal two days in a row, which is typically a very good sign of strength ahead. As a matter of fact, clear strength has followed the last two months that this signal has fired – as evidenced by the daily chart below.
Heck, this stock rocked the last time I wrote about it (Time to Buy $PCX), so let’s see if it can do it again!
Given that this stock has had a solid bullish framework, with higher highs and higher lows, we could be looking at another test at new highs for this stock. Look for price to rally toward the $30.50 to $32.00 range ahead, especially if $24.00 continues to hold.
Pivot Range Support
The daily chart also shows that price has found support at the monthly pivot range, which has developed a two-month Higher Value relationship – the most bullish pivot range relationship.
Every pull-back to the pivot range during a trending market is seen as a prime buying opportunity, as the range identifies a clear area of value.
Add to this the fact that the monthly Volume Point of Control (VPOC) is $25.05 (not shown), and you have a major source of support at current levels.
Again, look for a new high to be reached in this stock, especially if we get a push above $26.00 soon.
Let’s see how this one plays out!
Cheers!
Frank Ochoa
PivotBoss.com
Follow Frank on Twitter: http://twitter.com/PivotBoss
