ACI Arch Coal Daily Chart Negative Divergence

ACI Arch Coal daily chart showing a negative divergence smack down. The weekly chart mimicks other coal names with its ominous negative divergence so simply refernce the annotated BTU weekly chart which has the same look as ACI. This daily chart is weak and exhibiting rolling over behavior. This last big push up from Fall 2010 thru now are the affects from the Aussie floods. Bad news for our friends down under since much of their coal was, well, under water, but good news for U.S. coal companies. By the looks of the chart, that premium will be taken back out and result in lower prices.

Many gaps require filling down below in the 25 to 30 zone and curiously a big gap above, which would give price an excuse to visit 34-35 again, albeit only to place a right shoulder of a potential H&S. An H&S would use the 31.5 level as the neckline and target 27.0. The 20 MA is under the 50 MA which is more bad news for any coal bulls and indicators are below 50% levels and very agreeable to further weakness. Looks like sideways to sideways down for the remainder of the year. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.