Currently the stock price of Anthracite Capital Inc. (NYSE: AHR, AHR message board) has broken through the prolonged triangle formation and is moving down breaking one support line after another. Identifying the sell-off stop point might prove a profitable opportunity on this one though.

AHR_chart_triangle.jpgPeople were actually expecting for the price to go up when the triangle, forming since March 2009, was broken back at the end of September. I guess despite the technical break out it still came down to fundamentals that could not support the price rally under current condition.


The company had incurred significant losses in two out of the 5 past quarters and thus the share value got adjusted accordingly. Now the strongest bet would be for the sell-off to stop at $0.6 level, which can be identified as a strong support point both from historical price behavior and emotional importance of a round number.

Trading volume is somewhat fading, but the stock is still not at oversold position according to the RSI index, and that means the sell-off can continue for another couple of days or so. Money flow index however is near it own support level strengthening the idea of possible price support level at $0.6. By the time the price hits it RSI should also pass lower the 30 level, thus possibly stopping the further price fall.

If the support at $0.6 is however breached then another, but weaker, level would be at $0.4.
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