Chart of the day: Bullish on coal
Taking everyone by surprise, not least the beleaguered coalminers, the price of coal on the wholesale markets has suddenly risen to its highest in many months. Dalian coking coal futures, where the front-month contract has been consolidating happily in a large triangle for the past year, is no exception and, while not the most active of contracts, is a good indicator of where we are going next. The large triangle lies at the record low for this contract and is an important long-term base. Last week’s burst above its top and the top of the weekly Ichimoku cloud, with a massive Marabuzo candle, is significant and signals the start of a new bull market.
Nicole Elliott is a technical analyst