Coal 02 (Jul 12 - Dec 25)

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Coal is stuck in a downtrend… coal producer fund KOL plunges to a 52-week low.

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A Provocateur Sees Profits in Coal’s Long, Slow Death

http://www.bloomberg.com/news/2014-12-1 ... id=markets

[behappyalways]

Coal prices tumble on China slowdown
http://www.telegraph.co.uk/finance/comm ... wdown.html

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Bohai Rim coal inventories gain 3.7% to 21.29M tons

For the week from 29 December 2014 to 4 January 2015, Bohai Rim coal inventories increased from the previous week's 20.539 million tons to 21.29 million tons, representing a growth of 3.65%, cqcoal.com reported.

Source: AAStocks Financial News

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not vested

<Stock on Move>3 state-owned coal giants' stocks capped for further growth

Three mainland coal giants' stocks were capped for further growth on the first trading day of 2015, extending the previous robust trend.

After Macquarie upgraded the rating for H shares, YANZHOU COAL (01171.HK) (600188.SH)'s A shares last stood at RMB14.5, the highest in over 1.5 years; its H shares rallied 5% to $7.04.

CHINA SHENHUA (01088.HK) (601088.SH)'s A shares last traded at RMB22.32, hitting over 21-month high; its H shares bounced 3.2% to $23.9.

CHINA COAL (01898.HK) (601898.SH)'s A shares stood at RMB7.61, reaching a 22-month high; its H shares jumped 3% to $5.08.


Source: AAStocks Financial News

[winston]

Big coal-sector fund KOL drops to a 52-week low.

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This left-for-dead commodity be going from "bad" to "less bad" by Dave Forest

The best investors in natural resources consistently make money buying unloved sectors. And few industries are more unloved these days than thermal coal.

With prices in global coal markets have taken another notable dive over the last two months (see chart below from Platts Coal Watch), investor interest has dried up. But on the consumer side, news yesterday suggests demand in one major center is surging − which may spell an opportunity in the making.

The place is India. Where reports show that coal imports have once again been on a tear.

Platts reports that data from the Indian Ports Association show coal imports into 12 major government-run ports jumped 19% for the ten months from April 2014 to January 2015. Hitting 70.77 million tonnes − up over 11 million tonnes from the 59.64 million tonnes India brought in during the same period in 2013/14.

The increase was entirely due to thermal coal shipments. With coking coal shipments actually down by over a million tonnes during the period.

That means, all told, Indian buyers scooped up 12 million tonnes more thermal coal than last year. Proving that demand growth is still exceptionally strong in this part of the world.

This could signal a potential light at the end of the tunnel for the right coal exporters. Especially given that India’s attempts at securing overseas coal supplies have been hitting the rails of late.

Like the country’s biggest coal miner, Coal India. With reports this week suggesting that the big firm will abandon coal development projects in Mozambique − due to poor coal quality, making these mines untenable.

Mozambique had previously been one of India’s go-to hopefuls for securing nearby coal supply. Meaning that buyers here will now be looking for alternatives.

That could be an opportunity for firms that can develop coal supplies around the India Ocean sphere. In would-be producing spots like Madagascar and Kenya, for example. Watch for final import figures from India for the fiscal year (ending March 31), as well as any new projects being started up in this primed part of the world.

Source: Pierce Points
http://thecrux.com/forget-oil-we-just-g ... commodity/

[winston]

The Energy Sector You Need to Buy Today By Jeff Clark

It's finally time to buy coal stocks.

Over the past four years, the coal sector has been in a bear market. The Market Vectors Coal Fund (KOL) – which holds a basket of global coal stocks – has fallen from more than $47 per share in early 2011 to around $14 today. That's a brutal 70% decline.

But as regular readers know, every natural resource bear market eventually ends. And early gains from a new bull market can be large as beaten-down stocks bounce off deeply oversold conditions.

That's the situation setting up today in the coal sector…

We first started looking for a potential bottom in the coal sector in June.

At around $18 per share, KOL was trading above its former resistance line, and the stock and its moving averages were coiling together. This indicated KOL's momentum was changing to the upside. The sector looked poised to rally. But we recommended waiting to buy until the uptrend had kicked off.

The rally never came. The bear market continued. And coal stocks dipped to new lows.

In November, we checked in on the coal sector again. KOL was trading near $17 per share, and two more potential "buy" signals were setting up in the sector. We were just waiting for one of two things to happen:

1. For KOL to fall back down and make a slightly lower low around $15.50 per share. Because KOL's Moving Average Convergence Divergence (MACD) momentum indicator – a measure of overbought and oversold conditions – was extremely oversold, we said it wasn't likely to fall as low on any additional declines in the stock. This would create positive divergence (KOL making lower lows on the chart while the MACD makes higher lows) – which is often an early sign of an impending rally.

2. For KOL to pull back a bit, form a higher low, and then rally back above $17 per share. We would have the first set of higher highs and higher lows. And that's the definition of an uptrend.
In December, we got the first trigger. Take a look…

Please Enable Images to See this

KOL dropped to a new low at $14 per share in December. But while KOL was hitting lower lows, its MACD made a higher low – creating strong, positive divergence. Bargain hunters could have stepped in and bought coal stocks there (point 1 on the chart).

After a brief bounce in late December, KOL dipped back down and dropped to an even lower low late last month. Notice, though, that the MACD indicator continued to display positive divergence. So, even though bargain hunters who bought in December were sitting on small losses, there was still strong evidence that the sector was forming a bottom.

Today, there's even more evidence that a bottom is in place.

Since hitting a bottom at about $13.50 per share last month, KOL has now formed a series of higher highs and higher lows. It has also rallied above the resistance of its 50-day moving average (point 2 on the chart). These are both strong signals that indicate the end of a bearish trend and the beginning of at least an intermediate-term rally phase. It could possibly even be the start of a new long-term bull market.

If you haven't already bought coal stocks, right now is the time. KOL is at roughly the same price it was at its December low. But it's more obvious that the chart has started a new uptrend.

If you bought coal stocks in December, hang on. There are likely big gains ahead.

Source: www.growthstockwire.com

[winston]

Coal-sector fund KOL plummets to a 52-week low… shares drop 30%-plus in seven months.

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Japan

One country not turning away from coal is Japan.

The island nation has no significant indigenous energy sources and has relied on energy imports to power its modern economy.

But after shuttering more than 50 nuclear reactors after the Fukushima meltdown, Japan has needed even more imported fossil fuels.

As it struggles to bring some of its reactors back online amid widespread public opposition, Japan is increasingly turning back towards coal even as much of the world moves away from it.

Japan could see 7.26 gigawatts of new coal capacity over the next ten years.

Source: Oilprice.com