Short Squeeze ($PCX)

• Charles Amadeus
• September 15th, 2009

Patriot Coal is roasting the bears as it forms a triple top breakout and shoots up +20%. Like all the stocks here, there is an enormous short position and new highs are putting margin pressure on misguided short sellers.

Trading in a primary and secondary uptrend above a rising upper Bollinger, $PCX looks poised for further gains. A move below 11.06 would initiate a secondary downtrend, suggesting further consolidation.

$PCX offered excellent intraday entries, I even managed to snag some shares at 11.01 as it ripped higher into the afternoon. Once I get a real-time subscription to StockCharts.com, I’ll be able to post intraday P&F  breakout and stop levels for traders with short time horizons.