This at a time when rising natural gas prices should be benefiting coal stocks. According to Bank of America Merrill Lynch Global Research, the higher gas prices have been driving a “significant” return to coal, RTCC reports.
Perhaps that is one reason why KOL’s technicals remain tepid if not unappealing.
“As a technician I see this ETF in consolidation, not a trend higher, and therefore no need to be long it at this point. Should it make another higher high and turn that 200 day SMA high, gaining some separation, accompanied by a turn in the RSI and MACD upward and some accumulation then it gets interesting. Until then everyone else can have at it. And I will watch from the sidelines,” said Harmon.
Market Vectors Coal ETF
