CONSOL Energy Inc. (NYSE: CNX)

CONSOL Energy, Inc. produces coal and natural gas for energy and raw material markets. The company is involved in the mining, preparation, and marketing steam coal primarily to electric power generation industry; and metallurgical coal to steel and coke producers. Its coal products comprise thermal, high volatile metallurgical, low volatile metallurgical, and other coal. In addition, the company explores for unconventional gas, including coalbed methane, Marcellus, Utica, Chattanooga, Huron and New Albany shales. The company sells its natural gas principally to gas wholesalers. Further, it provides energy services, such as industrial supply services comprising distribution of mining, drilling, and industrial supplies, as well as integrated supply procurement and management services; terminal services that include storing coal or loading coal directly into vessels from rail cars; river and dock services that transport coal from river loadout facilities through towboats, harbor boats, and barges; and water services that provide water for industrial use.

To review CONSOL’s stock, please take a look at the 1-year chart of CNX (CONSOL Energy, Inc.) below with my added notations:

1-year chart of CNX (CONSOL Energy, Inc.)

CNX has created one important price level to watch. After trending higher over the last (4) months (navy), the stock has formed a clear resistance at $35 (red), which was also a common support level (green) prior to that. If the stock could break above $35 it would be breaking to an 8-month high. CNX is currently testing that $35 resistance.

The Tale of the Tape: CNX has been trending higher while forming a clear $35 resistance. A long trade could be made on a break above $35 with a stop placed under that level.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT