Is Coal trying to bottom again? $KOL

Posted on Sunday February 14, 2016

Update 3/6/2016

At this point all 3 Coal plays we were watching acquired their upside targets. That means we take profits and keep on the watchlist for the next potential bullish pattern.

$SXC

Update 2/27/2016: 

$KOL Currently looks like healthy consolidation above the neckline.

$TCK Acquired bullish inverse H&S target since this post. Now watching for consolidation and a move above 7.75 to fire next pattern.

 

 

$SXC still looks ready to pop, with consolidation right at the neckline. Needs to hold up there but if we clear out the sellers, should be rip city.

 

 

ORIGINAL POST:

This is an election year, so maybe the bet here is on a white house that is not so focused on global warming and the destruction of the coal industry. Maybe it is a bet on a Republican win. Whatever it is, we are seeing bottoming price action again here in Coal $KOL. Now, I do want to remind you that we did see this type of action back in the end of 2015, and it sold off miserably. That being said, I believe it is worth watching this pattern closely to see if it can complete and then form another bullish pattern. Telling us that maybe we have bottomed.

I will probably take a stab at the breakout small and may play 2 of the stocks within the ETF which have good price action. Not all coal stocks look good, but the two below $SXC and $TCK fit my trading style.

What do you think?

$SXC – Bullish inverse H&S pattern under constuction

$TCK – Small Inverse H&S pattern in motion. The Target is 5.70. Acquiring that target will tell us more about whether these stocks may want to bottom out for good.

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