Fairlead Strategies Idea Generator
Warrior Met Coal (HCC) & Updates (DAL, MUR)
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Among our open long recommendations, we recommend closing positions in Murphy Oil (MUR) because it has broken down below our stop-loss level. We are watching closely our short recommendation in Delta Airlines (DAL), which could be stopped out tomorrow.
Today we are adding coal mining stock Warrior Met Coal (HCC) as a short idea:
HCC has a new weekly MACD “sell” signal since meeting resistance near $40.00, suggesting intermediate-term momentum has shifted to the downside. The long-term uptrend appears to have lost its hold, and with room to oversold levels, we expect downside follow-through in the coming weeks.
A recent short-term breakdown by HCC is associated with negative short-term momentum that increases near-term downside risk to the bottom boundary of the cloud model pictured below. Short-term trend-following gauges like the 20-day MA have also rolled over in support of a pullback.
A downside objective can be gauged by long-term support from the 2021 high, near $27.30. The 50-day moving average, currently near $35.90, can be used a trailing stop-loss.
Warrior Met Coal (HCC, $32.85):
Target: $27.30
Stop-Loss: $35.90
Large ottion plays in DAL