I am a full-time investor with more than ten years of investment experience. Click to follow and you can receive my views on risks and opportunities as soon as possible.
The strong rise in the coal sector in recent years has attracted a large number of investors. Although performed poorly this year in the A-share market, the coal sector is still strong and the trend is still upward. Most sectors follow the market , so many investors are considering whether to participate in the coal sector.
The strength of coal is closely related to geopolitical problems this year. Geological problems lead to tension in supply and demand. As long as the geopolitical problems are not over yet, theoretically, the coal sector will continue to be strong. But no one knows when it will end.
Once the coal supply and demand relationship returns to normal, then the strength of coal may disappear, which will be a relatively large risk at that time. Therefore, I personally am not willing to participate in the coal sector. If I consider participating, I will only participate in a small amount of funds and only do short-term trading.
Coal short-term trend has recently declined. Judging from the trend chart of CSI Coal , the coal trend has fallen and correction has reached the trend line support level. Judging from the upward trend of coal, it is highly likely that it is a short-term bottom at this time. If I want to participate in the coal sector, I will consider entering the market in a small amount today.
This article is only a personal opinion based on personal experience combined with market factors analysis, and does not mean that the market will definitely go like that. Personal opinion is not used as investment advice.
