The Casual Contrarian: Foundation Coal (FCL)
A technical and sentiment look at Foundation Coal (FCL) strong price action and investor sentiment
by Joseph Hargett (jhargett@sir-inc.com) 4/9/2008 9:10 AM
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Keywords: FCL stocks options weekly
This week on the Casual Contrarian we are going to look at another coal mining specialist Foundation Coal, ticker symbol FCL. According to the company's website, Foundation (FCL: sentiment, chart, options) is committed to focusing on America's energy security and needs. Their 13 mining operations located in Pennsylvania, West Virginia, and Wyoming target the production of high-quality steam coal products used in the generation of electricity throughout much of the United States. Foundation also provides metallurgical coal to industrial manufacturers of steel products.
Technically, Foundation's weekly chart isn't quite as pretty as that of Alpha Natural Resources (the coal company we looked at last week), but FCL is still trading just shy of an all-time high. The equity has gained more than 47% during the past 52 weeks, and is currently riding its 10-week and 20-week moving averages steadily higher. What makes Foundation shares especially attractive at the moment is that they are in the process of rebounding from the lower rail of an uptrending technical channel.
Can FCL Provide a Foundation for Your Portfolio?
Returning to our weekly Schaeffer's Monday Morning Outlook column for guidance, we once again reiterated our bullish outlook on the coal sector, as energy prices (crude in particular) continue to hold strong despite economic concerns and calls for a drawdown. In today's edition of the Casual Contrarian, I take a closer look at the technical, sentiment, and fundamental prospects for Foundation Coal to see why this particular stock stands out among the rest. I try to throw in a bit of humor in all Casual Contrarian videos; so sit back, enjoy, and good luck in your trading. |
