YZC logoYanzhou Coal Mining Co. (NYSE: YZC, YZC message board) was among energy industry gainers of the day, yesterday, after the company's stock gained nearly 9% and closed at $5.72.

The company's stock rose significantly in the beginning of June, after Yanzhou implemented 5:1 reverse split, but has been on a downtrend since. Still, with all the negative impact of the crisis, the stock begins to show signs of possible short term increase. On a technical side, Bollinger bands came closer together indicating lowered volatility. Also the stock price increased to levels near its SMA, simple moving average, and went further from the lower of Bollinger bands. If it will cross that line, investors might expect to see at least some gains on the price in the near future.

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From a short term perspective, the stock has already been on a slight uptrend since the end of October. This limit the price is at right now might be easily crossed if the whole market decides to move up fueled by just another government attempt at handling the crisis.

I'm not saying the stock is poised to rise, it just that a few indicators show such possibility. Also, last month, trading volumes were much higher than usual indicating vast investor interest in this stock. Still, with all the crisis and unexpected market moves, it remains hard to predict stock behavior. Seems, it's now best to bet any stock will fall. Sooner or later.

Reference:

http://www.yanzhoucoal.com.cn