“It is painfully obvious that the bears are in control of the long-term trend, and the chart is a textbook style example of how the resistance of the 200-day moving average (red line) can act as a strong barrier to any chance of a reversal. Active traders will likely use the move toward the resistance as an opportunity to enter a position because it offers a risk/reward scenario that hasn’t been possible since late 2014. The declining MACD indicator and cross below its signal line will also be used as confirmation of a continued move lower and at this point long-term bulls will likely want to remain on the sidelines until the price can close above the resistance levels for several consecutive trading sessions,” reports Investopedia on KOL.
According to Bloomberg analysts, about two-thirds of money spent on adding new electricity capacity worldwide will go to renewable between now and 2040.
“Coal is one of the hardest hit areas in the broad commodities market, and many are starting to wondering if it is time to take the contrarian view and start forming a position,” adds Investopedia.
Market Vectors Coal ETF