Breakout in Coal….ACI and AG ETF (DBA)

Posted by Chris Kimble on 11/08/2010 at 2:25 pm; This entry is filed under AG ETF, Coal.
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It has taken a year for ACI to finally break line (1) at (2).  Be a buyer of ACI with a stop at line (1).

DBA has picked up about 10% since it broke resistance line (1) in the chart below. Another reason why we want to buy breakouts with stops.  I did have a 10% stop on DBA, lower the stop now down to 5%.

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8 Comments

  1. chris u November 8th, 2010 at 2:57 pm

    What is the price point of level 1? I estimate around 27.50, but I want to be sure to put the right stop in place.

  2. Chris Kimble November 8th, 2010 at 3:17 pm

    Chris u,

    I would use $27. Great question

  3. Jeff November 8th, 2010 at 3:59 pm

    Chris,
    Do you see stronger patterns/retracement levels in ACI than KOL?
    Best Regards,
    Jeff

  4. Chris Kimble November 8th, 2010 at 4:17 pm

    Hey Jeff,

    Both look familiar, per a breakout of resistance. KOL to me has an advantage, per having numerous holdings!

  5. dkyro November 8th, 2010 at 8:30 pm

    Please explain why KOL has the advantage, but you recommended a purchase of ACI instead. I like the ACI buy, but I almost bought KOL and now I’m curious. I was actually surprised to see an individual stock recommendation too, so I’m more curious now! Thanks

  6. Chris Kimble November 9th, 2010 at 8:04 am

    Doug,

    As you know I buy and sell based upon the “Power of the Pattern” ACI has been around for years compared with KOL which is fairly new. I can look back 4 years and see that line (1) in the ACI chart has been important, can’t do it with KOL. I find more comfort being able to look and find support/resistance over a number of years.

    Why did I say KOL has an advantage? KOL is a “global pool” of companies, related to the coal/energy industry. I believe that spreading risk between companies creates a little more of a safety net, yet this pooling sometimes can hold back performance.

    KOL is similiar to an ETF, multiple holdings. YTD date performance, both are up, ACI is up 10% more though.

  7. DKyro November 12th, 2010 at 10:09 am

    Chris, Are we out of DBA since it hit ~31.4 yesterday and we are now 5% off that?

  8. Chris Kimble November 12th, 2010 at 10:26 am

    dk…yes the trailing stop took us out with a small gain. I brought the stop up to protect the position.

    With some of the commodity charts looking like a hockey sticks, caution becomes my watchword. A good deal of people lately have started getting into the grains and softs. Getting a little crowded?