'Oversold' Coal Mining Stock Due For a Rebound

BTU's Bollinger Bands are flashing a "buy" signal

Laura McCandless

Deputy Editor

Nov 27, 2024 at 3:21 PM

Peabody Energy Corp (NYSE:BTU) stock has been chopping lower since its Nov. 6 52-week high of $29.94, down 10% in just the last week. The shares could be headed for a short-term bounce, however, as the pullback has them running into a short-term "buy" signal.

BTU just moved below the bottom band of its 20-day Bollinger Bands. Per Schaeffer's Senior Quantitative Analyst Rocky White, the shares moved higher after the past nine tests of this trendline, averaging a one-month gain of 6.4%. From its current perch at $24.58, a move of similar magnitude would put the stock back above $26.

BTU No 27

Adding another layer to its "oversold" status, BTU's 14-day relative strength index sits at a low 19.8. An unwinding of short interest could further momentum in the case of a rebound, too, as it represents 13% of the stock's available float.

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