KOL Coal ETF Weekly Chart Overbot Negative Divergence

KOL coal ETF shows the negative divergence, rising wedge and overbot conditions to start the year which resulted in the smack down. Upon closer inspection, however, you can see that the RSI was long and strong in the Fall, and this behavior dictates that price needs to come up for a matching or higher high again. Price now has satisfied the RSI's demands.

Now assessing the yellow lines, negative divergence exists across all indicators, so this is a top in price not the start of any extended upside. The Japan nuke and energy worries placed a bid under coal, KOL from 45 to 51, or a 13% premium built into the coal price now. Strong volume candle corresponds to the 45-49 range so price may be more comfortable in this zone. Price at 51 is a good candidate as a head of a potential H&S pattern moving forward. Sideways to sideways down moving forward. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.