Stock to Sell #2 – CONSOL Energy (CNX)
In our Stocks to Sell in April, with CONSOL Energy (NYSE:CNX) trading at $33.80, I said, “This stock has been in a bear market since March 2011. It is the leading developer of bituminous coal in the Appalachian Basin with enormous reserves. However, increased government regulation that limits the use of coal as an energy source has resulted in erratic earnings and a downward spiral in the price of its stock.”
Since early 2011, the stock has been trading in a bear channel with a target under $26. Recently, the stochastic bounced to an overbought status and the stock jumped. Investors should use the rally to sell CNX.