Steel Reelin’ in Years of Being Overlooked

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In a glimpse of mergers and acquisitions activity in the steel sector, Reliance Steel acquired MUSA. Both stocks are sharply higher this morning. In my Weekly Strategy Session over the weekend, I devoted a section to discussing the overlooked sector.

Here it is, with other ideas to watch in the sector:

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3. Keep an Eye on the Steel Sector to Benefit from a Sector Rotation

Not many people are talking about steel stocks these days, and rightly so–The sector has lay dormant for quite some time.

However, looking at the updated sector ETF weekly timeframe below, we can see price has been consolidating neatly in a bull flag for several weeks, right at prior major resistance. Note the upticks in buy volume over the past month or so, too. I believe the sector is setting up to break out imminently. I would not become aggressive here until we see a trigger of a price breakout up through $50. However, the group needs to be put on watch.

Here are three of the best individual ideas in the steel industry that I am stalking on further strength:

One Response to “Steel Reelin’ in Years of Being Overlooked”

  1. […] much longer can steel stocks remain dormant? (chessNwine also […]

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Steel Reelin’ in Years of Being Overlooked

608 views

In a glimpse of mergers and acquisitions activity in the steel sector, Reliance Steel acquired MUSA. Both stocks are sharply higher this morning. In my Weekly Strategy Session over the weekend, I devoted a section to discussing the overlooked sector.

Here it is, with other ideas to watch in the sector:

_______________________________

3. Keep an Eye on the Steel Sector to Benefit from a Sector Rotation

Not many people are talking about steel stocks these days, and rightly so–The sector has lay dormant for quite some time.

However, looking at the updated sector ETF weekly timeframe below, we can see price has been consolidating neatly in a bull flag for several weeks, right at prior major resistance. Note the upticks in buy volume over the past month or so, too. I believe the sector is setting up to break out imminently. I would not become aggressive here until we see a trigger of a price breakout up through $50. However, the group needs to be put on watch.

Here are three of the best individual ideas in the steel industry that I am stalking on further strength:

One Response to “Steel Reelin’ in Years of Being Overlooked”

  1. […] much longer can steel stocks remain dormant? (chessNwine also […]

Comments are closed.