AR, SWN, WLB update 5/10

Time to update some coal and energy stocks based on a member request 🙂

AR: Newly traded stock. Often IPO’s pop and drop as companies go public close to the top of their first cyclical wave. Then the stock retraces between 61-76% of the “zero to top” price range. Hence, AR should bottom around $15-$16 ideally. BUT, price can of course drop lower and we’ll have to wait for a first 5-waves up to suggest the low is in. For now watch the $15-$16 level. below that and $7-8 is next. Please note these are monthly candles!

AR

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SWN: May have struck it’s low as the C=1.618X A extension was hit to the T

SWN

In addition, zooming in from the monthly chart to the daily chart we can count 5 waves up. But price needs to reverse now from here get back over the 50d and 200d SMA to tell us the trend has changed to up instead of down. <200d: down. >200d: up. simple!

SWN2

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WLB: Tuff nut to crack, hard to count much other than corrective ABC’s everywhere. Price is now in what I’d call the “noise zone”: $4-$20. Needs to break higher to target $36ish. In between; and it’s everybody’s best guess where price will go next. Just not a clear looking chart, which we prefer to stay away from. We want trends not a roller coaster.

WLB