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The Dow Jones Steel group closed above daily resistance on Friday, but it is still 15% below the April highs as it has been lagging. The relative strength (RS) line has also broken its downtrend, indicating that the steel stocks are starting to perform better than the S&P 500. Some steel stocks have already moved sharply higher, but others have not. One interesting stock is Mechel OAO (MTL), which is a Russian mining and steel company. The weekly chart shows a strong close last week on increasing volume. The next upside target is in the $33 area with initial support at $26-$26.50 and key support at $22.20.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
