The chart below reflects that steel related investments have performed poorly over the past three years, when compared to the S&P 500. As you can see, the Steel ETF (ARCA:SLX) is lagging the S&P by almost 80% over the past three years.
Is an opportunity at hand?
The top chart reflects that SLX and United States Steel (NYSE:X) could be breaking out from steep falling resistance if they would happen to rally a little more. SLX may have created a bullish inverse head-and- shoulders and could be about to break the neckline.
Will Steel 'man up' and break resistance?
Stay tuned. A breakout could be bullish after doing so poorly for the past three years.