Peabody Energy (BTU) is gapping down this morning. But, the gap down this morning is retail investor related and has not taken out any support. As long as the institutions continue to hold this area BTU looks stable for a push upward.
It has been coming up off the bottom and starting to break the daily downtrend. If it does clear over 29.90 it still looks good for longs, despite the Republican Mitt Romney’s failed presidential bid.
GAP REVIEW
On October 22nd, 2012, BTU gapped up over $28.00 prior supply.
KEY LEVEL
Key Supply/ Resistance is $35.00.
THE TRADE
Buy BTU long over 29.90 and look for a target of $35.00.
