“Upside volume has dropped off in recent sessions. It made a double top in November and December(just below 50) and developed a complex head and shoulder pattern(see chart). This sets up resistance near 50, where it has met resistance several times in the past. A break through the 50 level would set up for a longer term move to the upside. Short term there is support near $45.50. There is also some minor resistance near $47.70,” said Chojnacki.
SLX has not closed above $50 since early 2013.
Market Vectors Steel ETF Top 10 Holdings
Chart Courtesy: Market Vectors