JRCC James River Coal Daily Chart Oversold Falling Wedge Positive Divergence

JRCC is beaten like a rented mule.  Note the purple channel where price failed out the lower rail, back kissed, and then tumbled down thru the current green channel. Price has now fallen into oversold territory, a falling wedge has formed, and the indicators are positively diverged.  The weekly chart is also positively diverged. All this says price is now on the launch pad ready for a rocket ride bounce. The coal sector is very dangerous lately since China and emerging nations are slowing so the demand for commodities is weakening.  Simply looking at the chart it is easy to see that the markets have already priced much of this dire news into the price. This trade is also dangerous since one only has to look at the PCX debacle over the last month. Projection is for a healthy bounce in JRCC at any time. Keystone started buying it today. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.