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Coal has not been too hot of late, nor hot over the past few years. Coal ETF KOL has lost nearly two-thirds of its value and momentum is oversold and could be creating a higher low, while KOL “may” have created a double bottom…nothing proven yet!
Should KOL breakout, it would be an initial positive for this hard hit asset. Two plays to watch in the Coal industry are Arch Coal (ACI) and Cliff Natural Resources (CLF).
If one believes in the ole concept of “Buy Low and Sell Higher” in my humble opinion, this hard hit asset is worth watching closely right now!