Base Metals Catch An Early Bid
This morning, all of the leading base and industrial metal stocks are catching a bid higher. It is important to note that this sector has been very weak since the start of the year. A case can be made that the leading base and industrial metal stocks have been weak since March 2011. One of the leading stocks in the sector is Freeport McMoRan Copper & Gold Inc (NYSE:FCX). This stock is very oversold on the daily chart and is really due for a short term bounce. Today, FCX stock is trading higher by $1.22 to $33.87 a share. Short term traders should watch for intra-day resistance around the $33.90, and $34.85 levels.
Some of the other leading base metal producers that are bouncing today include Southern Copper Corp
(NYSE:SCCO), Cliffs Natural Resources Inc (NYSE:CLF), and Vale (ADR) (NYSE:VALE). Please note, all of these stocks will generally trade inverse to the U.S. Dollar, therefore, it is very important to follow the U.S. Dollar index very closely.