Jee_D

COAL - Will it breakout?

Long
ICEEUR:NCF2!   NEWCASTLE COAL FUTURES
One commodity that I follow regularly is coal. For the reason, it influence a lot with mining stocks. The bearish trend of coal ended on Nov 2020 last year. Strong support that holds this market is 71.81-70.41. After breaking out that zone, price consolidating and forming box range corrective structure. For the last 14 weeks, price moving inside that box zone.

Now, the question is, with the recent upward movement, will it breakout the box range structure and continue the bullish trend?

To answer that, I count on the behavior of price towards the S/R. And I see price now breaks short term moving average and closed beautifully with strong body candlesticks (reflects strong buying power). This gives me a hint that maybe...just maybe, this time, the correction already get the bottom and this means, breakout can happen anytime now.



And where it will go after breakout?

112.14 (already marked on my chart)


Psst. Let me tell you a secret. Profits will be on mining business as long as coal price above US$70. And what is the price of coal now?

If profits released on this April 2021 for mining stocks, what will happen to the price?

Coal price rally higher, profits of mining business released and mining stocks ready to be traded.....

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