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The mid-term elections last week have stirred up some thoughts that the Republican party can bring coal back to life.
The above 2-pack reflects the price of Coal (left chart) and the Coal ETF (KOL). I believe the price point for KOL is very important, as it is testing the underside of channel support as resistance, for the first time.
Some of the coal names above have had some very volatile days over the past few weeks, as it appears this sector might have a few traders interested in nibbling at depressed levels.
Knowing what the Republicans can or will do with this industry is well above my pay grade! Humbly, I do feel what KOL does at this resistance point could give us some sense of where the Coal industry is going in the near future!
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