KOL (Coal ETF): Watching the Pullback
January 10, 2013 - 6:55am
I will begin to monitor KOL
Despite the big picture does not look bullish at all since 2 obvious patterns stand out in the weekly chart below:
Head & Shoulder with price now back testing the neck line (Red trend line)
Bullish falling wedge (Not complete yet) with price now testing the upper trend line (Black trend line)
Hence if one of the two patterns is playing out then price should be on the verge of resuming the downtrend.
However weekly momentum is suggesting that price could have established a longer-term bottom at the September 2012 low and a different pattern is forming.
A MACD buy signal is in force since Aug 8 2012
The RSI has moved above the 50 line + we have a clear trend line support in force since the June 2012 lows
So if we have bullish weekly momentum then there should be a bullish pattern.
Actually if we look at the price pattern from the end of May 201...
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