Elliott Wave 5.0 "Reboot"

Sunday, April 24, 2016

A Look At The KOL ETF Bull Market

Obama has killed off so much of the coal industry, now we are faced with a shortage of coal. Nobody has ever talked about coal being in a glut but when coal mines are shutting down or rendered to dirty we are going to get distortions in the supply and demand picture.  

Coal market fundamentals changed, yet spot prices remained stable - Today in Energy - U.S. Energy Information Administration (EIA)

This ETF is not about coal prices but about the producers as the coal prices are pretty stable.
KOL came to a screeching halt exactly on the $5 Fibonacci number. You can't get and closer to that as $5 can also be a major price point when inverse stock splits can occur.  That fear may no longer be an issue as the KOL price has gained over 61% from its low. ($8.66) is also very close to another Fibonacci number.

We would have to go back to 2009 when we get close to a potential $13 Fibonacci number. KOL would have to break out of my two small trend lines to do that. I think that would be no problem for KOL but we may need to get a correction to blast past that top trend line.

At the very top trend line, we have a potential $30-$34 price level, but we may be dreaming when we look that far ahead.

So far the starting impulse looks pretty good, but we have to watch for a correction that is far too large or far too ugly to fit into a good developing impulse.

It can take years to develop a good wave count and I would have to get data from another site to create a more detailed wave count.