Monday, November 01, 2010
China Growth, Wall Street Upgrade Propel Arch Coal
By Mike Paulenoff
Some of the metals and mining names that will benefit from renewed growth (in excess of 9%) in China are moving this morning, including Arch Coal (NYSE: ACI).
insert.a.chart.ACI
A strong China market, strong China economic data, and a Wall Street research upgrade have combined to propel ACI 5.5% higher this morning. Friday's plunge from 25.75 to 24.20 has been totally reversed, which suggests strongly that Friday's low represents the end of a correction from the October highs at 25.31/37 and, if so, the start of a new upleg that should revisit the October highs on the way to 29.50-31.00 thereafter.
Only a decline that violates Friday's low (24.20) will wreck the current positive technical (and fundamental) set-up.
