What would you do with this opportunity, answer…. Up 16% in a week, more to go?

On 1/15, the chart below was shared with Premium Members, reflecting what looked to be an a good opportunity/chart pattern.  This asset found itself near channel support and was creating a series of higher lows after a large decline.

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The answer to the quiz is Arch Coal (ACI) and the chart below reflects that ACI has gained 16% over the past week, compared to the S&P 500 making 2%.

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ACI has had a rough 18 months, losing 90% of its value.

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Despite ACI's 16% gain over the last week (1/15-1/22), the key to its future lies on enough buyers coming in to take out line (1) in the chart above.   Since ACI has been crushed over the past year, a breakout could reward investors pretty well with channel resistance coming into play at the $14 level.

 

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