Steel stocks tripled in 24 months. This strong rise could be a red flag but not for the steel stock apparently. All signs suggest that steel stocks will continue to be bullish in 2018.
We noticed a clear breakout, 3 months ago, and reported this in Steel Stocks In Major Bull Market As They Break Through Secular Resistance. This is how we concluded the steel stocks chart: “Right now steel stocks show a clear breakout. Visibly, there is much more upside potential.”
Note that we tend to use SLX ETF representing the steel stocks sector.
More recently, we followed up with this deep-dive analysis in the steel sector: 4 Steel Stocks That Could Benefit From Trump’s Tariffs. Our researcher Ralf identified 4 steel and iron stocks that are set to benefit from Trump’s tariffs. The 4 stocks analyzed in this article:
One of the observations made by our team, Ralf in particular, is that “as long as the next immediate support level of 45 (in SLX ETF) is not breached, the bullish case favoring the price breaking the current resistance level is increasingly likely. The next target will definitely be the top of channel again ~73 within next 2-3 years or earlier.”
So far, support at 45 points has held strongly. The steel stock sector seems to have succesfully tested its support at 45 points, and, with an increasingly better stock market sentiment, steel stocks seem to be poised to go higher from here.
The 4 top steel stocks mentioned in above article should be on your watchlist for 2018.