Bearish Trendline Looms for Struggling Oil Stock

Crude stock Peabody Energy Corp (NYSE:BTU) is 1.9% lower to trade at $13.24 at last check, extending its long-term slide on the charts. BTU has already shed 37% in 2025, one of many oil names struggling of late. In fact, the security's pullback may have only just begun, as the shares are near a historically bearish trendline on the charts.

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Per Schaeffer's Senior Quantitative Analyst Rocky White, the security is within one standard deviation of its 100-day moving average. BTU was below this this trendline in at least eight of the last 10 trading days and spent 80% of the last two months below it. Within these parameters, five other signals occurred in the past five years, after which the equity was lower one month later every time, averaging an 8.07% drop. A move of comparable magnitude would place BTU near $12.

All four covering brokerage firms carry a "strong buy" recommendation on Peabody stock, leaving ample room for bear notes moving forward. An unwinding of bullish sentiment amongst options traders could provide headwinds as well. BTU's 50-day call/put volume ratio of 1.83 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 83% of readings from the past year.

Now looks like a good time to weigh in with options, too. BTU's Schaeffer's Volatility Index (SVI) of 59% ranks in the 31st percentile of its annual range, meaning options traders are pricing in low volatility expectations.