There is something compelling about the action in Coal (KOL) lately ! It has been struggling for a month (Purple circle) with the 50% retracement level off the $60 peak in June 2008 ! It actually has not been able to make a weekly close above that retracement level at $35 ! Since March 2009 it acted well off the red support line at several occasions (green circles) ! When you look at the volume lately you can see that sellers are beginning to step in ! You know what this means : Any break and close below the red support will send KOL sliding to $28 in the short term ! Next post coming right after the US market opens ! Stay tuned !
