Grand Cache Coal is coming off of a Head and Shoulders formation and bounced off the center long-term trend line last week with indicators turning up from an oversold condition. So the question here is 'will it break the $10 trend line again, or will it fail it and move lower and possibly head for the 200 SMA line'? The 200 SMA line is pretty far below and would represent a drop of 33.3% from its recent high. This seems to me to be a little much. Looks like it will cost in the upper portion of the trend lines rather than fail them. The TSX index has been making what seems to be non-stop gains over the last few months so Grande Cache Coal should follow the general trend.
An entry here as a swing trade could be good if it breaks the center $10 trend line and continues to move up. This would give us a 3 to 4 week target of the upper trend line for 23.9% at around $11.65 or so. Your stop loss should be placed around the center orange trend line, a failure of this might bring it back to the $8 range.