Many of the steel stocks mentioned herein have potential upside in the forecast, as the bullish flow continues in the Dow Jones Steel Index. Pre-market session activity in this industry group appears to confirm this observation.
Cleveland Cliffs formerly know as Cliffs Natural Resources is about to lift above the VBP resistance levels indicated, while temporarily pausing at the 20ema yesterday. The 200ma is a short-term target, then previous highs at 8.77 (+/-).
CLF oscillators, RSI STO and MACD are all turning.
Schnitzer Steel Industries, Inc. SCHN offers an attractive alternative, as the company recycles ferrous and nonferrous scrap metals; and manufactures finished steel products worldwide. It operates through two segments, Auto and Metals Recycling (AMR) and Steel Manufacturing Business (SMB).
Technically, the chart is breaking to 52-week highs, which means there is little overhead supply, plus “SOTEMA“ is bullish. RSI and STO are rising, suggesting higher prices. The company does not report earnings until October 24.
The monthly chart is compelling if you are a swing trader, as price action lifts above resistance (VBP) at 27.25 (+/-). The potential exists to revisit all-time highs. Fundamentals will ultimately drive the bus to those levels if the company continues to outperform the industry group.
VALE saw block trade activity late Wednesday. The daily chart is less compelling than the other charts above, but it did form a hammer of sorts at the lower Bollinger bands.
All of these stocks should be monitored today for potential followthrough, as they are all green in the pre-market session.
Stocks we are watching today. DDD BBRY ABEO ARWR ARRY FIVE CTRL ICHR BAC C GS
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