Walter Energy Bears Firmly in Control

Published on Thursday, 26 July 2012 13:34 Written by TradersHuddle Wire

New York, July 26th (TradersHuddle.com) - Shares of Walter Energy, Inc. (NYSE:WLT) booked a new 52 week low by trading below $31.63. Traders are definitely monitoring Walter Energy's price action to see if this move attracts further selling, or if this last push down sets a tradable bottom in the stock.

Walter Energy, Inc. (NYSE:WLT) mines for coal. The Company produces metallurgical and steam and industrial coal. It also 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 company.

Walter Energy is currently trading -0.09% versus its previous trading session close, and it has calculated support and resistance at $35.00 and $38.33 respectively. Clearly, with this action this range has been penetrated, and traders will be reviewing price action to establish a new tradable range.

The overall market index S&P 500 is trading higher by 1.41% from its previous trading close, which means that Walter Energy stock is underperforming the overall market.