Steel Stocks Are Positive, But How Much Upside Is Left?
Today, most of the leading steel stocks are trading higher at the start of the trading session. Last night, the remarks from the Chinese Premier Li Keqiang mentioning that China's bottom line for economic growth is 7.0 percent is certainly helping the steel sector today. Recently, comments from China have been having a very short term effect on the industrial metal stocks. This tells us that the upside in the steel names could be very limited in the near term.
Some of the leading steel stocks that are trading higher today include United States Steel Corporation (NYSE:X), Steel Dynamics, Inc. (NASDAQ:STLD), Nucor Corporation (NYSE:NUE), and ArcelorMittal (ADR) (NYSE:MT). All of these important steel stocks have very little upside on the daily charts in the near term. Should these stocks form a consolidation pattern over the next week or two then these stocks could see further upside. X stock will have intra-day resistance around the $15.60, and $15.80 levels. The daily chart of X stock will have very good resistance around the $16.00 level.