‘Oversold’ Coal Mining Stock Due For a Rebound
Peabody Energy Corp (NYSE:BTU)
stock has been chopping lower since its Nov. 6 52-week high of $29.94, down 10% in just the last week. The shares could be headed for a short-term bounce, however, as the pullback has them running into a short-term “buy” signal.
BTU just moved below the bottom band of its 20-day
Bollinger Bands
. Per Schaeffer’s Senior Quantitative Analyst Rocky White, the shares moved higher after the past nine tests of this trendline, averaging a one-month gain of 6.4%. From its current perch at $24.58, a move of similar magnitude would put the stock back above $26.
Adding another layer to its “oversold” status, BTU’s 14-day relative strength index sits at a low 19.8. An unwinding of short interest could further momentum in the case of a rebound, too, as it represents 13% of the stock’s available float.
