The Coronado Global Resources Inc (ASX: CRN) share price is under heavy pressure today, making it one of the ASX's worst performers.
At the time of writing, the Coronado share price is down 8.78% to 44.7 cents, wiping out a chunk of recent gains. By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.7%.
Despite today's sharp fall, Coronado shares are up almost 40% so far in 2026, supported by a strong rally in metallurgical coal prices.
So, what's going on?
Image source: Getty Images
A sharp pullback after a strong run
Coronado's share price has staged a solid rebound over recent months, tracking the recovery in met coal markets.
However, after such a fast move higher, the stock appears to be taking a breather. Today's decline looks more like a pullback than a breakdown, especially given the broader context.
Coking coal, also known as metallurgical coal, is down 0.61% today, according to Trading Economics, but remains up around 13% over the past month. That suggests prices may simply be pausing after a strong rally, rather than starting a sustained decline.
Met coal remains the key driver
Coronado is a pure-play metallurgical coal producer, supplying coal used in steelmaking rather than power generation.
Demand for met coal is closely tied to global steel production, infrastructure spending, and industrial activity. Over recent months, improved sentiment around steel demand and tighter supply conditions have helped lift prices.
As long as met coal prices remain elevated compared to last year's lows, Coronado's earnings outlook looks much stronger than it did in 2025.
What the charts are saying
From a technical point of view, Coronado shares were looking a bit stretched before today's fall.
The relative strength index (RSI), a momentum indicator, had moved into the high 60s and low 70s. That often signals a stock may be due for a pullback.
On the chart, support sits around the low 40-cent level, with stronger support closer to 38 to 40 cents. If selling pressure continues, those levels will be worth watching.
On the upside, resistance remains near 50 cents, which has capped recent rallies.
Coronado also has a high beta, meaning it tends to move more sharply than the broader ASX market. That helps explain why the share price has fallen so sharply today.
Foolish Takeaway
Today's sell-off is painful, especially for short-term holders.
But Coronado's strong gains in 2026 show how quickly sentiment can change when coal prices move. If met coal prices remain firm, today's drop may turn out to be a short-term setback rather than a downward trend.
