"Arch Coal (ACI) Technical Analysis

Today we'll analyze the Stock ACI for online market trading,
Technical indicators to notice:
1- Last bearish trend was from 53.03$ (04/08/08) to 51.35$ (04/09/08) a 1.68$ move
2- The current bullish trend started from 51.35$ at 04/09/08 and is currently trading at 56.68$.

3- According to ADX, the trend is currently strong bullish, which is getting stronger.furthermore, the ADX location between DMI+ and DMI- is hinting on a strong move ahead. the stock is very volatile at this point.
4- Bearish Divergance in MACD.
Short term chart patterns :

5- The Stock was supported by a support line, identified by two points: 51.35 and 43.15 that was broken down at 52.18 transforming into a resistance line.
Mid term chart patterns :

6- The Stock traded in a bearish channel identifed by support at 40.1 and 41.51, resistance between 44.55 and 47.97 which was broken up at 43.31.
Long term chart patterns :

7- The Stock formed Double Top Pattern at 54.83 that failed, and formed a support .

Conclusion:
ACI was trading in a strong bullish wave, which is becoming stronger .
Technical indicators and chart patterns show highly volatile movements favoriting bearish direction,
recommend hedging long positions or entering short position or bearish spread options strategy , because of the high expected future volatility, consider constructing symmetrical options strategies for buying volatility through strangles or straddles.
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Resistance Levels: 58.18.
Support Levels: 55.42, 55.39, 54.64, 54.01, 53.39, 51.35, 41.22, 37.57, 37.30,.