With recent market strength I have started looking for stocks that have made 52 week highs and had a decent pullback off those highs. One of my favorite such charts right now is Peabody Energy Corporation (BTU). BTU, the leading coal stock in the market, had earnings a few weeks back and has since then slowly grinded higher, never taking out its earnings low. I believe that the break of the $66.32 pivot on Friday will lead to much higher prices, eventually back to highs of around $74. I would look to pick up some BTU on a retest of the $66 level with an out at $63.20. What was resistance should become support?
*DISCLOSURE: No relevant position- plans to initiate a position
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