Coal: About To Heat Up And Break Out?
Chris Kimble | Mar 26, 2014 09:39AM ET
Coal has not been too hot of late, nor has it been hot over the past few years. The Market Vectors Coal ETF (ARCA:KOL) has lost nearly two-thirds of its value and momentum is oversold. This could be creating a higher low, while KOL "may" have created a double bottom...though nothing proven yet.
Should KOL break out, it would be an initial positive for this hard hit asset. Two plays to watch in the Coal industry are Arch Coal Inc (NYSE:ACI) and Cliffs Natural Resources Inc (NYSE:CLF).
If one believes in the old concept of "Buy Low and Sell Higher," in my humble opinion this hard hit asset is worth watching closely right now.
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