Coal is trading like it’s going to zero. As you can see above, the $KOL etf has a prominent head and shoulders pattern and it has pretty much broken the neckline on the weekly chart.
I remember back in April natural gas was also going to zero. $UNG, the etf for nat. gas, was trading at roughly 14 bucks, but two months later it trades at 19 which is about where t closed yesterday. That’s about 40% in two months. The technical pattern now looks uber bullish and frankly it looks higher.
Coal has mega challenges with the EPA, China slowing, the planet slowing etc..
So will coal see 50% + returns from these levels over the next six to twelve months? I say they do. Buy em’ when they’re cryin’ I say.