Walter Energy, Inc. (NYSE: WLT)

Walter Energy, Inc. produces and exports metallurgical coal for the steel industry. It also produces thermal and industrial coal, anthracite, metallurgical coke, coal bed methane gas, and other related products. The company offers its thermal coal for electric utilities and industrial customers. Walter Energy, Inc. exports its metallurgical coal to Europe, Asia, and South America; and markets its thermal coal primarily in the United States. The company was formerly known as Walter Industries, Inc. and changed its name to Walter Energy, Inc. in April 2009. Walter Energy, Inc. was founded in 1946 and is headquartered in Birmingham, Alabama.
Please take a look at the 9-month chart of WLT (Walter Energy, Inc.) below with my added notations:

WLT found support at $10 (blue) twice back in June and August. The stock then managed to rally up to a high of almost $20. Now the stock has approached $10 again and that might provide another bounce higher. However, the stock’s recent lagging of the overall market could be setting the stock up for a breakdown.

The Tale of the Tape: WLT has a key level of support at $10. A trader could enter a long position at $10 with a stop placed under the level. If the stock were to break below the support, a short position would be recommended instead.
Please share this article