Technical Setup: PEABODY ENERGY CORP Appears Poised for a Breakout.

A possible breakout setup was detected on PEABODY ENERGY CORP (NYSE:BTU) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:BTU.

In-Depth Technical Analysis of NYSE:BTU

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

Overall BTU gets a technical rating of 8 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, BTU is only an average performer.

• The long and short term trends are both positive. This is looking good!
• In the last month BTU has a been trading in the 22.74 - 26.28 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the yearly performance of all stocks, we notice that BTU is one of the better performing stocks in the market, outperforming 84% of all stocks. However, this relatively good performance is mostly due to a recent big move.
• BTU is part of the Oil, Gas & Consumable Fuels industry. There are 218 other stocks in this industry, BTU did better than 58% of them.
• BTU is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so BTU is lagging the market slightly.

Our latest full technical report of BTU contains the most current technical analsysis.

Why is NYSE:BTU a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:BTU has a 9 as its setup rating:

BTU has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 25.99. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 24.60, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for BTU in the last couple of days, which is a good sign.

How to trade NYSE:BTU?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.