3 Steel Stocks to Reinforce Your Portfolio

Advertisement

Investor appetite for metals isn’t isolated to those of the precious variety.

3 Steel Stocks to Reinforce Your Portfolio

Source: iStockphoto

Sure, gold and silver are on rocket ship rides to the moon, treating owners to daily doses of profits. But lately the euphoria has spilled into steel stocks. And, bonus, they aren’t nearly as extended as their precious-metal brethren.

That means lower risk and arguably more potential profits if they end up following in the footsteps of silver and gold.

Many steel stocks are just now breaking from multimonth bases, suggesting their newfound uptrends should have staying power. Check out these three steel stocks.

3 Steel Stocks to Buy: Rio Tinto plc (ADR) (RIO)

3 Steel Stocks to Buy: Rio Tinto plc (ADR) (RIO)

Source: OptionsAnalytix

First up is Rio Tinto plc (ADR) (NYSE:RIO).

The London-based metals and mining corporation has risen from the abyss in recent months. Since carving out a 52-week low in January at a lowly $21.89, shares of RIO are up over 45%. Though riddled by fits and starts, the budding bull run has ascended back above all major moving averages, taking out a number of resistance levels in the process.

With Monday’s pop, RIO is hurdling above short-term resistance. Look for a continuation to $36 and beyond in the months ahead.

Grab the Sep $30 call options.

3 Steel Stocks to Buy: United States Steel Corporation (X)

3 Steel Stocks to Buy: United States Steel Corporation (X)

Source: OptionsAnalytix

United States Steel Corporation (NYSE:X) boasts one of the cleanest price charts of all steel stocks. Its action over the past few months has taken on the form of a cup-and-handle that is just now breaking out.

X stock’s ascent has been sufficient in turning the 200-day moving average, which is no small feat. But, then again, with X closing in on a 200% gain since its January lows, chart watchers should expect some serious trend reversal signals to be flashing.

Outside of the Brexit drop, the volume patterns have been overwhelmingly bullish. The landscape has been pockmarked with accumulation days, suggesting institutions are buying en mass here.

Grab the Sep $18 call options if you think the good times keep rolling.

3 Steel Stocks to Buy: Nucor Corporation (NUE)

3 Steel Stocks to Buy: Nucor Corporation (NUE)

Source: OptionsAnalytix

Nucor Corporation (NYSE:NUE) rounds out our list of steel beauties. Its uptrend is the most mature, and last week’s breakout was arguably the best-looking of the bunch.

Like a good little bullish stock, its current price is perched above all major moving averages, leaving little by way of overhead resistance.

Despite a rousing rally last week, NUE stock is a touch overbought here. Since pivoting at $46, shares are up 17% in virtually a straight line. Prudence dictates waiting for some type of pullback or at least some consolidation before rushing in.

Following such healthy action, I would consider buying up the Oct $52.50 call options.

At the time of this writing Tyler Craig had no positions in any of the aforementioned securities.

For a free trial to the best trading community on the planet and Tyler’s current home, click here!


Article printed from InvestorPlace Media, https://investorplace.com/2016/07/3-steel-stocks-buy/.

©2024 InvestorPlace Media, LLC