Coal Stocks Still Have Little Spark
The coal sector has severely underperformed the major stock averages and the overall energy sector. This morning, the major coal stocks are trading in positive territory, however, they remain weak on the daily charts. The Market Vectors Coal ETF (NYSEARCA:KOL) is trading higher by 0.27 cents to $35.33 a share. KOL will have intra-day resistance around the $35.60, and $36.00 levels. Should KOL decline intra-day the ETF will have support around the $35.00, and $34.30 levels. The daily chart for KOL remains weak and will have daily chart support around the $32.90 level.
Some leading coal stocks that remain weak on the daily chart include Peabody Energy Corp (NYSE:BTU), Alpha Natural Resources Inc (NYSE:ANR), and Arch Coal Inc (NYSE:ACI). It is likely that the metallurgical coal divisions have been slowing down for these companies. It is metallurgical coal that is used to make steel and other industrial products.