With both precious and industrial metals poised to recover from corrective phases, we recommend VanEck Steel ETF (SLX):
SLX looks poised to emerge from its corrective phase after a successful test of long-term support defined by the weekly cloud model (shaded area on the chart). Since holding support, SLX has reclaimed its 200-day (~40-week) MA on improved short-term momentum.
From an intermediate-term perspective, SLX looks poised to generate a weekly stochastic upturn, which bodes well for an eventual retest of the April high. Relative to the S&P 500 Index (SPX), SLX looks poised to resume its strong uptrend after undergoing a long-term turnaround supporting outperformance.
Resistance from the April high near $70.40 can be used as a targeted level. In order to manage risk, a stop-loss can be placed near important weekly cloud support (~$56.80), ideally awaiting consecutive daily closes below as reason to close out long positions (to avoid whipsaws).
VanEck Steel ETF (SLX, $60.48)
Target: $70.40
Stop-Loss: $56.80
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