Back on February 13, 2016 I did a big write on my blog regarding the bullish patterns within the XME sector and that it looked like it was bottoming. On March 6th of 2016 I updated the post saying that XME had acquired it’s upside target and that I took my profits and would wait for the next bullish setup to arrive. (i.e I would rotate out and into something else that was moving).
On February 20th, I did similar analysis by looking withing XME and noticing that the Steel Sector was showing signs of life. I did a quick post “Is it crazy to think Steel is bottoming?”
In last week’s journal, I had 7 things that struck me as I review the post Brexit charts.
“Many of the sectors that broke bottomed first in Feb and led us higher, are now seeing continuation price action patterns (cup/handle breakouts)”
It is that theme that has me long the XME ETF and looking within it now for some beta. In doing so I can’t help but to look at the steel names once again. All poised for their next move potentially higher.
Here are a few charts worth watching in the metals and steel space.
First the SECTOR CHART
SECTOR Relative Strength appears to be bottoming as well.
FCX (Copper not steel) but a setup to watch none the less.
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