WLT- Walter Energy
May 8 2013
Doing some afternoon scanning, looking for things that may have some good risk reward, I came across WLT. Noticing that the coal sector in general may have a turn coming here soon. Today’s action in WLT has proven that the exhaustion volume on May 2 was real and the bulls are ready to rumble. You’ll notice on the chart that April’s POC was 17.25 and that is right where this move has started from.
The stock has some room to move above with some well defined areas of business to be conducted. The key here is being able to find a spot to get on this move. Somewhere in the mid 18’s may offer that potential trade. Stops are very clear under the 16 lows where the pick up in volume occurred to end the move down. Look for this to have good follow thru with the sector also moving up.