Corey Rosenbloom: I’m seeing increased chatter about Coal stocks and Market Vectors-Coal ETF (NYSEARCA:KOL) regarding a potential breakout and larger reversal.
Let’s take a quick look at the Weekly and Daily Chart to highlight the key levels to watch, potential targets, and try to answer the question “Is this THE breakout?”
First, I’m showing a longer-term weekly chart of the coal ETF symbol KOL.
We can see a persistent and relentless DOWNTREND beginning in 2011 at the $50.00 per share high and potentially ending with a larger Double Bottom price pattern at the $17.00 per share level (2013 and early 2014).
Aggressive traders enjoy calling market bottoms while more conservative traders need a little more ‘proof’ or evidence of a potential reversal.
Notice what’s happening now – a breakout above the falling 50 week EMA which is something that has not happened throughout the entire downtrend.
I zoomed-in the perspective to highlight the breakout – it’s the image at the top right of the chart (above $19.50).