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Bearish Moving Average Cross by Walter Energy (WLT)

Published on Mon, 01/28/2013 - 12:17
By Robert Cotter

Today, shares of Walter Energy (NYSE:WLT) have fallen below their 10-day MA of $37.69 on a volume of 1.2 million shares. This may provide short-term investors a chance for a short position, as such a crossover often suggests lower prices in the near term.

Walter Energy, Inc. mines coal. The Company produces metallurgical and steam and industrial coal,, manufactures blast furnace, foundry, industrial and buckwheat coke, and produces light oil, coal tar, and ammonium sulfate. Walter Energy also degasifies coalbeds and sells the gas to a utility.

In the past 52 weeks, shares of Walter Energy have traded between a low of $28.01 and a high of $76.95 and are now at $37.45, which is 34% above that low price. Over the past week, the 200-day moving average (MA) has gone down 1% while the 50-day MA has advanced 1.2%.

Walter Energy has overhead space with shares priced $37.45, or 11.2% below the average consensus analyst price target of $42.15. The stock should hit resistance at its 200-day moving average (MA) of $41.01, as well as support at its 50-day MA of $34.34.

By Robert Cotter
rcotter@fnno.com