One of the world’s most-hated commodities could become the next market leader

From All Star Charts:

Tradition has it that if you misbehave throughout the year, you might just end up with a lump of coal under the tree on Christmas morning. But going into the end of 2012, it might not be such a bad thing.
In case you hadn’t noticed, the coal sector has been consolidating in a nice tight range for almost seven months. These narrow ranges typically resolve themselves with a vicious move one way or another. We’re in the camp that this resolution comes with a move higher.
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Here is a chart of the Market Vectors Coal ETF ($KOL) in a tight range since May.
The first thing that stands out to me here is the higher low that momentum was putting in as prices were making fresh 52-week lows in September. This bullish divergence in the relative strength index is clue No. 1 for higher prices…

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