These 5 Steel Stocks Are Showing Strength: A Price Chart Analysis.

As the information technology sector may be about to pause the upward price moves, the steel industry appears to be gaining in popularity. It’s probably too early to talk about any kind of profound change in investor psychology, but money flowing into these types of metals stocks is definitely worthy of note.

5 Steel Stocks Moving Up.

Commercial Metals.

The daily price chart shows that the stock — in just the past few weeks — broke out above the August/September 2023 resistance level. It seems to have already re-tested that breakout level and re-gained the initial upward thrust. Note that the 50-day moving average crossover of the 200-day moving average in February provided a good signal.

The steel company’s weekly price chart shows how price just took out all of the 2023 highs. Outside of the big cap tech and social media names, you don’t often see a chart where both the 50-week and the 200-week moving averages continue basically upward for such a long period.

Carpenter Tech.

This steel equity has not yet made it to “new 52-week high” status yet but the action is encouraging. It dipped to below the 200-day moving average in February and the buyers came in again. The 50-day moving average may now be about to curve toward up again.

Carpenter Tech’s weekly price chart shows that the 50-week moving average crossed above the 200-week moving average in November 2022 — and signal proved to be prescient.

Nucor.

This is a price chart showing a steady, unmistakable upward trend from late October 2023 to the present. The 50-day/200-day moving average crossover took place in December 2023. Since then, it seems to occasionally dip toward the up trending 50-day before the buyers return.

On the weekly price chart, Nucor is breaking out above the previous resistance levels from April 2022 and January 2023. Note the relentless trend upward of the 200-week moving average.

Reliance Steel.

I’ve red-circled the mid-February 2024 gap up. The stock is holding up well after that move and just exceeded that day’s high price, a sign of decent strength. Both the 50-day and the 200-day moving averages are trending steadily upward.

Reliance Steel trends well with both the 50-week and the 200-week moving averages in a mostly relentless move up.

Universal Stainless & Alloy Products.

This week’s breakout above the earlier March high was mostly re-traced on Friday’s big volume day. It’s not unusual to see this kind of digestion of price when a stock moves so quickly and so well. It’s the most selling on the chart, indicating that a few investors decided that $24.50 was enough for now.

I’ve red-circled the mid-2023 spot where the 50-week crossed above the 200-week moving average. Note that the relative strength index is indicating a negative divergence versus price action.

Charts courtesy of Stockcharts.com.

More price chart analysis and commentary at johnnavin.substack.com.