“SLX should hold above $45.50 for the setup to remain in play in the short-term. A clear break of $45 may not kill the pattern, but would certainly require a few weeks of consolidation to repair the damage,” added Wagoner.
Steel stocks have a tendency to be volatile. The $99.5 million SLX has a beat against the S&P 500 of 1.86 and a three-year standard deviation of 29.3%, according to Market Vectors data.
Market Vectors Steel ETF
ETF Trends editorial team contributed to this post.