“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,” according to Kimble. “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.”
Even a move above its 50-day moving average could spark KOL. The ETF resides just 2.5% below that line, which it has not closed above since September.
Despite its struggles, investors have stuck by KOL, pouring $21.5 million of the ETF’s $156.4 million in assets under management into the fund this year.
Chart Courtesy: Kimble Charting Solutions