The Coal Vectors ETF (KOL) has been stuck in a tightening trading range the last five weeks. After the sharp January decline, the ETF formed a triangle in February. As volatility decreased, the Bollinger Bands contracted to their narrowest range since early November, seen of a triangle breakout. Watch the current triangle boundaries for the next direction clue from KOL.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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