{"id":53031,"date":"2014-06-19T11:31:45","date_gmt":"2014-06-19T15:31:45","guid":{"rendered":"http:\/\/countingpips.com\/?p=53031"},"modified":"2014-06-19T11:31:45","modified_gmt":"2014-06-19T15:31:45","slug":"commodities-are-building-bases-and-about-to-rally-steel-market","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/06\/commodities-are-building-bases-and-about-to-rally-steel-market\/","title":{"rendered":"Commodities Are Building Bases and About To Rally \u2013 Steel Market"},"content":{"rendered":"
June 19, 2014<\/div>
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By Chris Vermeulen – GoldAndOilGuy.com<\/span><\/a><\/strong><\/p>\n

Commodities in general have been under pressure for the last couple years. This can be seen by looking at the GCC Greenhaven Continuous Commodity ETF which holds a basket of resources.<\/p>\n

The weekly chart has formed a bullish bottom pattern, and as of last January it looks as though it\u2019s now building a basing pattern. Overall commodities are in the very early stages of a stage 1 basing pattern and it looks as though it will be a few more months before any significant breakout will occur. But there could be some early entry points if you know what to look for\u2026<\/p>\n

A few days ago I talked about how commodities tend to perform well near the end of a bull market in the United States stock market. I also pointed out which hot index was going to benefit from this.<\/p>\n

Read Commodity Index Report:<\/b> http:\/\/www.gold-eagle.com\/article\/gold-and-oil-fuel-canadian-stock-market-rally<\/span><\/a><\/p>\n

In this article I want to bring your attention to the steel market. Using the SLX Steel ETF you can clearly see the bottoming pattern and basing pattern for this commodity.<\/p>

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Currently steel is underperforming the stock market and is vulnerable to lower prices. But if we see a few things come together in the coming days or weeks, this could be a screaming buy.<\/p>\n

My technical take on steel is this:<\/b><\/h3>\n

SLX has formed a bottoming pattern from January \u2013 mid March. It has since put in a strong impulse rally to make a higher high, and is now consolidating above key support. The RSI (Relative Strength) remains in a down trend, but if this starts to rise and SLX breaks above its recent highs around the $47.75 level I feel steel will start to rally with $50 being the next major whole number and previous high for steel to find some resistance.<\/p>\n

Also price has been riding along the 200 day moving average which is acting as support. If price closes a couple of days below the 200 moving average I would consider this to be a bearish sign.<\/p>\n

\"SLX\"<\/p>\n

Steel Trading Conclusion:<\/b><\/h3>\n

In short, we are looking for the relative strength to start making new highs. Also we want to see a reversal bar on the SLX chart to the upside which we got on Tuesday. Or you can wait for a breakout and close above $47-48 area. Stop would be somewhere around the $45.75 area to start, then raise it as price rallies using intraday pivot lows on the 30 minute chart.<\/p>\n

GET THESE REPORTS DELIVERED TO YOUR INBOX FREE:<\/span> www.GoldAndOilGuy.com<\/a> <\/span><\/b><\/p>\n

Chris Vermeulen<\/p>\n

Disclaimer: I do not own shares of TAN as this point, but may buy some in the near future.<\/i><\/p>\n

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By Chris Vermeulen – GoldAndOilGuy.com Commodities in general have been under pressure for the last couple years. This can be seen by looking at the GCC Greenhaven Continuous Commodity ETF which holds a basket of resources. The weekly chart has formed a bullish bottom pattern, and as of last January it looks as though it\u2019s […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-53031","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/53031","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=53031"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/53031\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=53031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=53031"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=53031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}