Market Overview

The Breakout In Steel Stocks Were Forecasted In November

The Breakout In Steel Stocks Were Forecasted In November

Below are five stocks to watch according to VantagePoint, a platform that uses artificial intelligence and intermarket analysis to predict price movement. Today the focus is on steel stocks, which have been on a run to start 2018, and how the breakouts were forecasted back in November. 

What's On The Charts

  • Each candle on the following stock charts represents one day of trading action.
  • The black line on the chart is a simple 10-day moving average.
  • The blue line is generated via the AI in VantagePoint's intermarket analysis. It forecasts what the moving average will be 48 hours in advance.

A trend shift is represented by the two lines crossing. As long as the two lines don't cross, the current trend remains intact.

  • The red/green bar below the candle chart is a Neural Index. It determines whether a stock will move higher or lower in the coming two days. 



After a period of several weeks in which it was in a tight trading range, Caterpillar Inc. (NYSE: CAT) had a predictive moving average crossover to the upside in mid-November following a rally in the steel sector. The trend has remained intact since then, even though it's nearly reversed several times. In fact, it's actually appeared to get stronger in recent weeks. Since the initial bullish crossover, the stock is up over 20 percent. 

Commercial Metals


The steel rally in November also included Commercial Metals Company (NYSE: CMC), which is up over 42 percent from its low on the 15th. also had a crossover to the upside in late-November. The Neural Index becoming green also indicated that upside was coming. Since then, the stock has been buoyed by an acquisition and very strong Q1 earnings results. 

U.S. Steel


United States Steel Corp. (NYSE: X) is up 35 percent since its bullish crossover on November 15th. had a bullish crossover in late-November. Despite a near-reversal following a midday JP Morgan downgrade on Dec. 12, the trend has remained intact. All eyes will be on U.S. Steel on Jan. 31 when they report earnings after the bell.



Nucor Corporation (NYSE: NUE) followed the same pattern. It had a crossover to the upside in mid-November, indicating to traders that a bullish trend was starting. Since then the stock is up 30 percent. Nucor reports Q4 earnings Jan. 30 before the bell. 



Alcoa Corp (NYSE: AA)'s crossover didn't come until December 11. This was immediately followed by an upgrade to Outperform at Credit Suisse. Since the day of the crossover, Alcoa is up 36 percent. Alcoa reports Q4 earnings Wednesday after the bell. 

Watch the full Hot Stocks Outlook in the video below. 

About the Hot Stocks Outlook

The Hot Stocks Outlook is a weekly series. It’s designed to show traders how improving their timing is the key to maximizing gains and minimizing losses. VantagePoint Trading Software identifies trend reversals with up to 86 percent accuracy, helping traders get into the right side of trades at just the right time.

VantagePoint is an editorial partner of Benzinga.

Posted-In: vantagepointNews Markets Best of Benzinga


Related Articles (AA + CAT)

View Comments and Join the Discussion!
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Dow Earnings: Analysts Expect Goldman Sachs Revenue Decline

Mid-Day Market Update: Blackhawk Surges On News Of Acquisition By Silver Lake; Eiger Biopharmaceuticals Shares Slide