Stock Price Trends

Arch Resources Inc (ARCH)

Arch Resources, Inc. produces and sells thermal and metallurgical coal from surface and underground mines. The company is headquartered in St. Louis, Missouri.

Stock Price Trends

Stock price trends estimated using linear regression.

Key facts

  • The primary trend is increasing.
  • The growth rate of the primary trend is 13.44% per annum.
  • ARCH price at the close of October 4, 2024 was $138.18 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 33.28% per annum.
  • ARCH price at the close of October 4, 2024 was inside the secondary price channel.
  • The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.

Linear Regression Model

Model equation:
Yi = α + β × Xi + εi

Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)

Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)

where:

i - observation number
Yi - natural logarithm of ARCH price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e


Primary Trend

Start date: March 2, 2022
End date: October 4, 2024

a = 4.4219

b = 0.0003

s = 0.1211

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0003) – 1
= 13.44%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1211) – 1
= 62.31%

March 2, 2022 calculations

Top border of price channel:

Exp(Y605)
= Exp(a + b × X605 + 2 × s)
= Exp(a + b × 877 + 2 × s)
= Exp(4.4219 + 0.0003 × 877 + 2 × 0.1211)
= Exp(4.9671)
= $143.61

Bottom border of price channel:

Exp(Y605)
= Exp(a + b × X605 – 2 × s)
= Exp(a + b × 877 – 2 × s)
= Exp(4.4219 + 0.0003 × 877 – 2 × 0.1211)
= Exp(4.4828)
= $88.48

October 4, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(4.4219 + 0.0003 × 1,824 + 2 × 0.1211)
= Exp(5.2944)
= $199.21

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(4.4219 + 0.0003 × 1,824 – 2 × 0.1211)
= Exp(4.8100)
= $122.73

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 13.44% per annum.
  • ARCH price at the close of October 4, 2024 was $138.18 and was inside the primary price channel.

Secondary Trend

Start date: January 3, 2024
End date: October 4, 2024

a = 6.9022

b = -0.0011

s = 0.0640

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0011) – 1
= -33.28%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0640) – 1
= 29.16%

January 3, 2024 calculations

Top border of price channel:

Exp(Y1,067)
= Exp(a + b × X1,067 + 2 × s)
= Exp(a + b × 1,549 + 2 × s)
= Exp(6.9022 + -0.0011 × 1,549 + 2 × 0.0640)
= Exp(5.3131)
= $202.97

Bottom border of price channel:

Exp(Y1,067)
= Exp(a + b × X1,067 – 2 × s)
= Exp(a + b × 1,549 – 2 × s)
= Exp(6.9022 + -0.0011 × 1,549 – 2 × 0.0640)
= Exp(5.0572)
= $157.15

October 4, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(6.9022 + -0.0011 × 1,824 + 2 × 0.0640)
= Exp(5.0082)
= $149.64

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(6.9022 + -0.0011 × 1,824 – 2 × 0.0640)
= Exp(4.7524)
= $115.86

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 33.28% per annum.
  • ARCH price at the close of October 4, 2024 was inside the secondary price channel.