Commodity Stocks Stage A Feeble Bounce
This morning, the major stock indexes are trading higher on the session. The early stock rally is broad based as most leading stock sectors are trading higher. The leading commodity stocks have faded sharply from their gap higher open. This tells us that the leading commodity stocks are one of the weakest sectors at this time.
Freeport McMoRan Copper & Gold Inc.(NYSE:FCX) is trading higher by 0.47 cents to $ $42.41 a share. This stock has plummeted sharply lower over the past month. Traders can watch for intra-day support around the $41.70 area. Should the stock somehow rally higher throughout the trading day there will be intra-day resistance around the $43.00 and $43.50 levels.
Cliffs Natural Resources Inc.(NYSE:CLF) is another leading commodity stock that focuses on iron ore pellet production. Iron ore pellets are used to produce steel and steel products. This morning, CLF stock is trading higher by $1.86 to $69.51 a share. This stock will have intra-day resistance around the $70.00 and $71.00 areas. Should this stock decline intra-day traders can watch the $67.80 and $66.90 area for intra-day support. The daily chart of CLF looks very similar to FCX and many other leading commodity stocks as it remains near the recent lows.
Southern Copper Corp.(NYSE:SCCO) is another leading copper producer that has come under tremendous selling pressure since July 20, 2011. This stock is actually trading off of its recent lows on the daily chart. Therefore, it is showing us that it has better relative strength than FCX and CLF in the near term. SCCO stock is trading higher by 0.23 cents to $30.11 a share. Traders should watch for intra-day support around the $30.00 and $29.50 levels. Should SCCO rally higher traders should watch the $30.50 and $31.00 levels.