The coal sector has significantly lagged the market for well over a year, and could be ready to play catch up.
Alpha Natural Resources (ANR) is a stock that has been undergoing institutional accumulation for the past 4 months, and is threatening to break above key resistance.
If it were to retake and hold above 10, this would signal the start of a new uptrend with a target around 14.
OPTIONS PLAY
A simple trade for option traders would be to purchase the December 9 call for around 1.40. A stop under 8.25 would put per-contract risk around 82. A move to 11/share would justify the risk/reward in the trade.
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