Investing
Haven
No Result
View All Result
Friday, January 22, 2021
  • Login
  • Premium Services & Login
  • 2021 Forecasts
  • Commodities & Gold
  • Stocks
  • Crypto
  • Mission 2026
Crypto investing >>
Investing
Haven
  • Premium Services & Login
  • 2021 Forecasts
  • Commodities & Gold
  • Stocks
  • Crypto
  • Mission 2026
No Result
View All Result
Investing Haven
No Result
View All Result
Home Forecasts

Top Steel Stocks Forecast For 2020

Top steel stocks will do very well in 2020, that's our general forecast. However, timing an almost perfect entry and exit will be crucial.

by Taki Tsaklanos
December 15, 2019
in Forecasts
0
Tags: 2020 ForecastsSLX
steel stocks
3.2k
VIEWS
Share on FacebookShare on Twitter

As part of our series of annual forecasts, especially our 2020 forecasts, we cover a forecast about the top steel stocks. This article is not meant to pick out top steel stocks. However, it is meant to forecast in which direction top steel stocks will move in 2020. According to our top steel stocks forecast for 2020 we believe the first part of the year will be great. We see an upside potential of 25% in that time period.

Our top steel stocks forecast for 2020 is based on the monthly chart of the top steel stocks ETF (SLX) as well as one of the leading indicators for the commodities space (AUDUSD).

Whether steel stocks will rise because of tariffs is irrelevant. We don’t consider steel news in any of our forecast(s).

Top steel stocks forecast: our leading indicator breaks out at the start of 2020

Let’s start with our traditional approach: checking the long term trend of our leading indicator.

For simplicity we look only at one leading indicator: the Australian Dollar against the US Dollar. In short the AUDUSD currency pair.

Why is this currency pair important for our top steel stocks forecast for 2020? Because it shows the big picture trends for the commodities space.

You don’t want to be invested in steel or any other base metal if commodities leading indicators are bearish.

The AUDUSD has two very clear messages:

  1. The line in the sand for commodities is .80 on its chart. This is indicated with this horizontal line (our annotation). It indicates the level where commodities turn bullish (once broken to the upside). Alternatively a move from current levels in that direction will help commodities tremendously in the short to medium term.
  2. The bearish trend that started early 2018 is about to end now. It may even have ended last week. This is what we indicated with the yellow circle. It is the start of a reversal, but one (if it holds) with major consequences on the commodities space as it might confirm that Commodities Start Turning Bullish In 2020.

If we had to pick out one, and just one, leading indicator for commodities as well as for steel, we go for the AUDUSD chart pattern.

australian dollar 2020

Top steel stocks forecast: SLX sector breakout

The SLX ETF is the best proxy to work with, representing the steel stocks sector.

We look at the monthly SLX chart to uncover monthly trends. Big picture trends is what we are interested in, the rest is mostly noise (or meant to time perfect entry and exit points).

The monthly SLX chart has one clear message: it is attempting to break out of its 20 month downtrend. Make no mistake, a bear market of almost 2 years is something powerful. Turning such a bear market into a bull market requires a lot of energy.

Now that’s *exactly* why we seek confirmation of leading indicators. We want to have confirmations outside of the sector that such a U-turn is taking place.

The AUDUSD confirms the message from below chart, and vice versa.

Top #steel #stocks look bullish with an upside potential of 25% in the first half of 2020. All conditions are right! Entering will be easy, but a perfect exit will be crucial for success. $SLX Click To Tweet

 

This means we have green light to look at specific entry and exit points, as well as how exactly to play this potential new bullish trend.

top steel stocks forecast 2020

The above chart tells us a few things:

  1. The line in the sand for SLX ETF is 37 points. That’s where the horizontal line (annotated) comes in. This is the breakout point from 2016, the breakout point as we head into 2020, but also support in 2013/2015.
  2. We see both a horizontal and vertical breakout happening right now.
  3. The strong bearish trend that started in 2011 may be ending now.

We cannot be more exact than this in the public domain. However, we can be more specific in our premium services. If you want to play this trend with InvestingHaven’s research team then subscribe to our free newsletter and get alerted on when/how we want to play this sector.

Steel stocks forecast: first price target 25% upside potential

In general we believe that a first upside target of 25% is in the cards. We believe this first target will be met in the first part of 2020.

What happens afterwards remains to be seen. We may see a continuation of the bullish trend, or a stabilization. We may also see a (temporary) bearish trend.

If you want to stay alerted on trend changes we recommend you to subscribe to our free newsletter. In our MOMENTUM INVESTING service we look after powerful trends to play in the medium term timeframes. We look for continuous profits from medium term trends with the aim to double our capital every year.

Moreover, free newsletter subscribers will receive updates on our forecasts as they occur.

Continuous Follow Up on our Steel Stocks Forecast (free forecasting email newsletter)

We absolutely recommend to subscribe to our free newsletter in order to receive future updates. We publish updates on our steel stocks forecast. But we also do publish other forecasts.

We continuously, throughout the year, publish updates on our annual forecasts. Any revision in our forecast are published in the public domain and appear in our free newsletter. Therefore, the only way to track the pulse of markets and stay tuned with our forecasts is to subscribe to our free newsletter >>

Must-Read 2020 Predictions from InvestingHaven’s Research Team

We absolutely recommend to read the following predictions as they are highly informative and very well researched.

  • 1

    A Platinum Price Forecast For 2021

  • 2

    7 Top Market Forecasts For 2021

  • 3

    10 Cryptocurrency Investing Insights As 2021 Kicks Off

  • 4

    Commodities Outlook For 2021

  • 5

    Which Precious Metal To Buy In 2021?

  • 6

    20 USD: Our XRP Price Forecast For 2021 Is Underway

  • 7

    6 Must-Read Cryptocurrency Predictions For 2021

  • 8

    Global Markets Leading Indicator Euro: Very Bullish Going Into 2021

  • 9

    Emerging Markets Explosive Going Into 2021

  • 10

    The Most Powerful Investment In Global Financial Markets In 2021

  • 11

    A Gold Price Forecast For 2021 *Gold 2200 USD Underway*

  • 12

    A Silver Price Forecast For 2021 *Silver 30 USD Underway*

  • 13

    A Dow Jones Forecast For 2021 *New All Time Highs*

  • 14

    7 Must Read Cryptocurrency Investing Tips For 2021

 

  premium service trade alerts   premium service trade alerts   premium service crypto teaser  
Taki Tsaklanos

Taki Tsaklanos

Taki has +15 years of experience in global markets. His methodology is unique and effective, yet easy to understand; it is based on chart analysis combined with intermarket / fundamental / sentiment analysis. His work appeared on major financial outlets like FinancialSense, MarketWatch, ... Email: taki.tsaklanos@gmail.com. Twitter: twitter.com/investinghaven

  • Trending
  • Comments
  • Latest
silver prices

A Silver Price Forecast For 2021 *Silver 30 USD Underway*

January 2, 2021
gold price

A Gold Price Forecast For 2021 *Gold 2200 USD Underway*

January 2, 2021
dow jones

Dow Jones Long Term Chart on 20 Years *10 Must See Charts*

October 26, 2020
dow jones

A Dow Jones Forecast For 2021 *New All Time Highs*

January 2, 2021
bulls bears

S&P 500: Is This A Medium Term Topping Pattern?

0

Protected: [Emerging Markets/Gold/Silver] Heads up Template

0

Protected: [SPY] Heads up Template

0

Protected: [GOLD] Buy Alert Template

0
bulls bears

S&P 500: Is This A Medium Term Topping Pattern?

January 17, 2021
bitcoin

Bitcoin: Major Top Already Hit Or Parabolic Move Underway?

January 17, 2021
risk

Global Stock Leading Indicator: A Not So Promising Setup For February of 2021

January 17, 2021
us dollar

Dollar Ready To Create Havoc With Markets?

January 17, 2021

Connect with InvestingHaven

Receive top notch forecasts for free.

*We hate spam as you do.

Categories

  • Premium Services & Login
  • 2021 Forecasts
  • Commodities & Gold
  • Stocks
  • Crypto
  • Mission 2026

Site Navigation

  • RSS Feed
  • About us
  • Sitemap
  • Privacy & Disclaimer
  • Terms of Service
  • Contact Us
Investing
Haven

Top notch forecasting with gold price forecast, many stock predictions, cryptocurrency charts. Many investing tips and crypto market analysis.

Copyright © 2021 Investing Haven

No Result
View All Result
  • Premium Services & Login
  • Premium Investing Service
  • Premium Trading Service
  • Premium Crypto Service
  • 2021 Forecasts
  • Markets & Stocks
  • Commodities & Gold
  • Crypto Markets
  • Mission 2026

Copyright © 2021 Investing Haven

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In