Possible Long Idea In The Steel Sector

The Steel Sector (SLX) is down 8 days in a row and oversold from a numbers perspective; only 1 stock out the 27 stocks within the ETF is above its 10 day moving average.  ETF’S tend to be mean reverting instruments so a short term rally here will not be out the question.  Mechel OAO (MTL) is a stock within the sector that looks to be at place where a bounce should occur.  The stock formed a 4 month base in which it broke out of  in September around the $7 dollar level, it ran to 8 and now has retraced for 8 straight days back to the base breakout level.

All you need to know about MTL

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