The USD 43.15 support area, currently tested, might facilitate a technical rebound. The company’s fundamentals could validate this scenario.

From a fundamental viewpoint, the company has a value in line with the industry as its enterprise value ratios show.
Moreover, recently, EPS estimates for the two coming years have been upwardly revised by analysts. This positive fact opens the way for a better security evaluation by investors on the stock exchange.

Currently the stock is oversold and, in the mid-term, is trading in a neutral trend. In the short term, this trend is negative but has initiated a recovery upon contact with the USD 41.65 area. Alliance Resource Partners should be able to confirm its increase in the next trading sessions. These supports (USD 41.65 and 43.15) are a trading opportunity in order to anticipate a technical rebound towards USD 47.

Therefore, the proximity of the USD 43.15 support is an opportunity to go long on Alliance Resource Partners. The first target is a return in the USD 47 resistance area, which represent a potential of 8%. In fact, the security has to cross this area in order to re-establish a bullish trend. A stop loss order can be placed under USD 41.6.