Brennan Basnicki's  Instablog

Alpha Natural Resources (ANR) looking Bullish across 3 timeframes

First, on the hourly chart

1. RSI: break above previous resistance at 60 and new support found at 30 confirms uptrend
2. Price decline from post election highs (Romney coal rally) has made a series of lower lows on diminishing volume; confirms short term down trend may be over
3. Three significant spikes in price that were confirmed with large volume
4. Divergence in MACDs

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On the daily chart

1. RSI: Break above previous resistance at 50 and new support at 40 confirms uptrend may be in place
2. Relatively high volume indicates stock accumulation taking place
3. Slow stochastics confirm near term bullish outlook

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And finally on the weekly chart

1. New uptrend not confirmed yet on the RSI; break above 50 would reaffirm bullish outlook
2. Strong weekly hammer formed last week on significant volume
3. Largest volume spikes on up candles
4. Divergence in MACDs
5. First time stochastics have broken above 80 level
6. Price has broken out of previous downtrend

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Conclusion: ANR looks ripe for a near term bounce, and possibly a longer term reversal in trend. A weekly close below 7 however negates this thesis, and indicates the last three months price action could be a bear flag, indicating further downside potential. Note however the previous consolidation/continuation pattern was confined within the downtrend, while the recent one has broken out of the previous trend. One should watch other coal stocks for further confirmation, with the coal ETF "KOL" (KOL) being most useful.

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Disclosure: I am long ANR.