There are couple ways we can look at the intermediate-term chart pattern of Alpha Natural Resources (NYSE: ANR), a coal-sector play. One is as a large cup and handle pattern, where the upmove off of the handle starting at the June 2008 pivot low at 32.30 into the Jan 12, 2011 high of 68.05 represents an incomplete advance that still "needs" another leg to the upside that should test and hurdle 68.05 into the 72.00-75.00 target zone.
Alternatively, we can view the big picture of ANR as a large base formation that broke above its 2-year "neckline" at 52.50-55.50 at the end of the Dec 2010, which triggered a time non-specific target zone of 80.00-85.00.
The initial thrust off the neckline hit a high of 68.05 on Jan 12, after which, in classic technical form, ANR reversed and returned to test the neckline support zone (52.50-55.50), which so far contained recent selling pressure twice in January (at 52.80 and 53.07).
The upmove from Monday's low at 53.07 into today's high at 57.09 (so far) has the right look of the start of a new upleg off of the "Double Bottom" test of the neckline in late January. If my analysis proves correct, then ANR should accelerate to the upside with power in the upcoming hours and days.