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Tony Golan
Chief Technical Analyst
StockProfit.com™
 ZoomJames River Coal Company (NASDAQ: JRCC) is starting a strong new long-term up-trend. The stock is making higher highs and higher lows above a rising 200-day moving average (the red line in the chart above). Relative Strength Differential (RSD), our proprietary indicator for selecting stocks in super-strong up-trends, is way above the 25% threshold, indicating JRCC is far outperforming the S&P 500 and is therefore likely to continue doing so.
JRCC started the current long-term up-trend when it made a low of 7.35 at the 200-day moving average in late January. From there, JRCC rallied to a new high of 19.82 in early March. JRCC then pulled back, made a higher low of 14.05 in late March, and turned back up. On Monday, JRCC made a new high of 25.82 and closed near its high of the day.
The extent of this most recent move in JRCC and its relative strength against the S&P 500 indicate that the next pullback in JRCC is likely to be mild and slow, and result in a higher low and a turn back up to resume the up-trend to higher highs. Therefore, intermediate-term holders of JRCC can place protective sell-stops at 14.00, 0.05 below the late March low of 14.05. Then, the stop can be moved closer to the market if JRCC does make a higher low and reverses back up to resume the up-trend.
The extent of this most recent move in JRCC and its relative strength against the S&P 500 indicate that the next pullback in JRCC is likely to be mild and slow, and result in a higher low and a turn back up to resume the up-trend to higher highs. Therefore, intermediate-term holders of JRCC can place protective sell-stops at 14.00, 0.05 below the late March low of 14.05. Then, the stop can be moved closer to the market if JRCC does make a higher low and reverses back up to resume the up-trend.
Tony Golan
Chief Technical Analyst
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