Alert: Metal Stocks May Bounce
The markets are getting hit again, though beginning to move off their lows of the day. There has been a key move to the upside in United States Steel Corporation (NYSE:X). While an analyst upgraded the price target also a massive support was hit at the lows today. These have triggered a solid reversal. The move up has started. Note the chart below. While U.S. Steel has already started its strong move higher, Cliffs Natural Resources Inc (NYSE:CLF) may be next. After trading in a ridiculous uptrend, CLF fell sharply the last two days. The stock has crashed all the way down to the 20 moving average on the daily chart. In the short term, this could give a supportive bounce and should be watched. The support level is $83.00 and was kissed today. Since then, the stock has stopped falling and started to inch off the lows.
Many commodity stocks have been rocked in the last two days. Agriculture companies like Potash Corp. Saskatchewan (NYSE:POT), all the way to oil stocks and gold stocks like Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX). Are these stocks a good buy?