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More buyers than sellers are showing up in these metals and mining stocks lately. You can tell because the price charts show a “higher than the previous peak” pattern, a surefire giveaway that something’s changed. It’s not necessary to determine exactly what that might be as long as you’re just interested in up or down.
Cleveland Cliffs (NYSE: CLF)
That green “P&F Pattern: Triple Top Breakout on July 29th, 2022” explains the basic situation with this old-school Cleveland, Ohio-based steel company. After peaking earlier in 2022 up there at 34, the stock hit an unrelenting selling streak that took it down to 14.50 by mid-July.
This chart reveals that the selling may finally be over. There are no guarantees, of course, but the move upward through 17 and then to 20 suggests that the trend may have reversed from down to up. The next indication would be a move through that red downtrend line, now at the 27/26 level.
Carpenter Tech Corp (NYSE: CRS)
The company is in the “metal fabrication” business from its headquarters in Philadelphia, Pennsylvania. Note the green “P&F Pattern: Triple Top Breakout on 12 August 2022” in the upper left hand corner. That is referencing the point on the price chart where the stock broke above previous resistance at 36.
If Carpenter Tech Group can continue upward to past the red downtrend line at 37/38, that would be potentially quite bullish. The stock is pulling back today but that’s not an unusual situation after such a strong upward move for so many days. By the way, the company pays a 2.14% dividend.
Intrepid Potash IPI -4.6% (NYSE: IPI)
Potash, according to the U. S. Geological Survey, is “used primarily as an agricultural fertilizer (plant nutrient) because it is a source of soluble potassium, one of the three primary plant nutrients; the others are fixed nitrogen and soluble phosphorus. Potash and phosphorus are mined products, and fixed nitrogen is produced from the atmosphere by using industrial processes.”
This chart was a “P&F Pattern: Triple Top Breakout” on Friday — today it’s reverted to “P&F Pattern: Bull Trap.” So, there’s uncertainty about who is control now, buyers or sellers. If the stock makes it above that 46 level, that might be the bullish trigger. Intrepid Potash trades with a price-earnings ratio of 2 and at 84% of book value.
Sisecam Resources (NYSE: SIRE)
This point-and-figure chart shows a classic breakout pattern: note that the price is higher now than it was back in 2018. Note how the price has lifted steadily upward since the early 2020 pandemic lows for all stocks. This is remarkable given how difficult it’s been for most stocks to continue upward momentum this year.
Here’s the catch: Sisecam Resources has average daily volume of just 26,000 shares. This means there will be no interest in the stock from large institutional investors who would be unable to get in and out without moving the price like crazy. The company is paying a dividend of 8.97%, by the way.