This morning the leading metal stocks are all under pressure. This group is viewed by many traders and investors as an economic growth barometer. Leading metal stocks such as Cliffs Natural Resources Inc (NYSE:CLF), United States Steel Corp (NYSE:X), and Freeport McMoRan Copper& Gold (NYSE:FCX) are all sharply lower this morning.
Cliffs Natural Resources Inc (NYSE:CLF) is leading iron ore pellet producer that has been under pressure ever since China began to slow down their real estate market. China has clearly overheated and appears to no longer to want to stockpile commodities. The stock will have good daily chart support around the $45.00 level on the daily chart.
U.S. Steel Corp (NYSE:X) has sold off sharply throughout the month of April after briefly trading above the $70.00 level. The stock will have daily chart support around the $50.00 level and more at the $41.00 area should it decline further.
Freeport McMoRan Copper & Gold Inc (NYSE:FCX) has also sold off since early April when the stock was trading around $88.00. This stock will have support at $65.00, $60.00, and $45.00. Each of these support areas for the stock could see small bounces.
When trading the leading metal names it is important to always monitor the U.S. Dollar Index. The dollar will generally trade inverse to most commodities and inflationary stocks.
Nicholas Santiago
Chief Market Strategist
www.InTheMoneyStocks.com
