For investors seeking momentum, VanEck Vectors Coal ETF is probably on radar now. The fund just hit a 52-week high and is up over 160% from its 52-week low price of $5.07/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

KOL in Focus    

This product offers exposure to the overall performance of companies engaged in coal operation, transportation and manufacturing of coal mining equipment. The fund charges 59 bps in fees (see all Energy ETFs here).

Why the Move?

Coal prices are rising on dwindling supplies. In particular, China implemented a five-day working week for domestic mines and also cut down output to restore the long-ailing coal market. As per Financial Times, the move was designed to boost the profitability of its heavily indebted coal miners. Plus, lower supplies in seaborne markets and persistent strength in Chinese steel output leading to increased demand for coal prove to be positives.

More Gains Ahead?

It seems that KOL might continue with its strength given a positive weighted alpha of 89.20. A positive weighted alpha hints at more gains.

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