This Coal ETF (KOL) is a basket of coal companies and is starting to show signs of a new bull market. A breakout and close above $26.00 should trigger strong buying with the potential of a 21% gain before it hits my first price target. This could go way past that, but one target at a time, folks.
Naturally, I would like to see a bull flag or pause in KOL over the next couple of weeks, then look to get long using the pivot low of that pause/bull flag as my protective stop. I'm not jumping in here as the broad market looks ready to correct and ¾ stocks follow the big board, which will pull KOL down.
ANR: My Top Coal Stock PickI pointed out ANR at $7.50 at the beginning of December, as it was the best-looking coal stock I could find. The two key indicators, price and volume, were clearly pointing to higher prices and the potential gain. Even if it was just played up to the Stage 1 Resistance Level, it still netted a 30% move. Crazy part is that there is the potential for a 100% rally to my first price target.