Since mid-March steel Market Vectors Steel ETF, SLX, is bouncing off the oversold territory. Now it is approaching the resistance from the down trend-line from the double top made in December.
The major holdings of the ETF are: Rio Tinto (RIO), Vale (VALE), Arcelor Mittal (MT), Posco (PKX). Nucor (NUE) and Reliance Steel (RS). All are showing similar opportunities, though with a short time horizon and with risk.
RIO is seemingly making a bearish Head-&-Shoulder pattern. The pattern’s right-shoulder is about 7-10% away from current levels, giving a good short-term but low probability trading opportunity with 3% risk from recent lows.
Vale is bouncing off a double bottom (almost a triple bottom). If it clears the down trend-line and intermediate top of 14.85 then the next target would be near 17.00.
Arcelor Mittal is rebounding from the 50% Fibonacci retracement of the rally from last June. The resistance one is 12-15% away from current levels and the risk is about 6% from the recent low.
$MT_D_140324" width="632" height="582" srcset="https://i1.wp.com/www.marketremarks.com/wp-content/uploads/2014/03/MT_D_140324.png?w=632 632w, https://i1.wp.com/www.marketremarks.com/wp-content/uploads/2014/03/MT_D_140324.png?resize=300%2C276 300w" sizes="(max-width: 632px) 100vw, 632px" />
Yesterday, AK Steel (AKS), had a strong volume large candle break out day. If it breaks above yesterday’s high of 7.15 then the next resistance is near 8.47, 18.5% away with a conservative stop loss of 15.7% below recent low or an aggressive stop-loss of 9.8% below yesterday’s low.
United Steel (X), has almost broken above a horizontal channel. The resistance and measure target is near 31.15, which is 14% away from current level. The conservative stop loss is below the channel low of 23.74, giving a risk of 13%. The aggressive risk is 7.8% below yesterday’s low.
$X_D_140324" width="632" height="582" srcset="https://i1.wp.com/www.marketremarks.com/wp-content/uploads/2014/03/X_D_140324.png?w=632 632w, https://i1.wp.com/www.marketremarks.com/wp-content/uploads/2014/03/X_D_140324.png?resize=300%2C276 300w" sizes="(max-width: 632px) 100vw, 632px" />