The rally now has it testing 2012, 2013 & 2014 highs, that so far has been strong as steel!
If SLX can breakout at (2), it would suggest that a key breakout is taking place and could attract buyers. If it would break out, could it be suggesting something bigger is taking place in the commodities space or be sending an important macro message?
Below looks at the TR commodity index over the past 50-years-
The commodities index has created a series of higher lows over the past couple of years and is now testing the top of a 7-year falling channel. If it would breakout at (1), it should attract buyers and could suggest that a long-term cycle of commodities might have bottomed.
The VanEck Vectors Steel ETF (SLX) was unchanged in premarket trading Tuesday. Year-to-date, SLX has gained 12.76%, versus a 4.14% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.