Karachi, January 09, 2019 (PPI-OT): Coal Heading for a Correction
Coal price (API 4, FOB Richards Bay 1M Future) extended its decline last week after topping at 98.45 level which also coincides with 61.8% Fib resistance (61.8% Fib of 104.15/87.90 descend). The weekly data below reveals that trouble is brewing in the commodity with price action falling below the immediate support at 93.17 (50% Fib of 87.90/ 98.45 ascend) setting its sight back on the former supports at 88/87 levels now. Further down, a cut through here, would open doors for a move lower towards 83/ 82 levels. That said, a grossly oversold momentum can be observed on daily time interval so a bit of recovery to the levels of 93.84/ 94.64 cannot be ruled out in order to alleviate the oversold momentum of the secondary indicators.