Market Gives A Thumbs Down To Buyout By Consol Energy Inc. (CNX)

Consol Energy Inc. (NYSE: CNX) has agreed to buy the Appalachian exploration and production business of Dominion Resources Inc. for $3.5 billion. The acquisition by Consol Energy Inc. (CNX) would add 1.46 million oil and gas acres and 9,000 producing wells to Canonsburg based Consol’s portfolio, bringing its natural gas business to 35% of the coal company’s revenue.

After a gap-down opening, Consol Energy Inc. (CNX) has slipped below its 20 day MA and 50 day MA in the same session by early afternoon trading on Monday following the buyout deal. The same confirms the possibilities that Consol Energy Inc. (CNX) may move into a bearish mode on charts in near future.