No Stopping this Metal Rally

JC Parets
May 7, 2021

Anybody who has been tracking the market closely has noticed that the one sector which has been displaying the most strength off late is Metals. The sector-specific stocks have generated handsome returns in a short span of time and don't seem to be slowing down as well.

So for those who missed this rally, or those who are already invested, what are the levels to track going forward? We've got you covered.

Here is a comprehensive list of the best stocks from the sector. Some of these are actionable and some are price targets to track.

Let's start with an idea that we have shared and updated often in the months gone by. JSW Steel has made an appearance in our conference calls as well as our weekly scans and continues to shine through even today.

The price continues to display strength and is currently trading in no man's land. The next target that is on the radar is 875. The indicator seems like it has moved into the bullish momentum territory and isn't in any hurry to move out.

We are bullish above the level of 590 with a target near 875.

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The big-name that's coming up next is Tata Steel. What a phenomenal move we've seen in this stock! If you hadn't noticed already, the price made a 12-year base breakout and is now clocking new all-time highs. Another big base breakout that can be added to the list of long-term positive trends.

The indicator is comfortably placed in the bullish territory with the price breaking out with a strong bullish candlestick.

We are bullish above the level of 1,050 with a target near 1,610.

Hindalco has been on our radar for some time now and has come up in the weekly scans as well. Our first target is a few points away from the current level. The next level to track is 407. A move above this would warrant a new actionable idea with a target near 605. The risk management level in that scenario would be 407.

Jindal Stainless has also broken out of a three-year big base and looks good for the next leg of the rally. With this week's close, the price has broken out with a strong bullish candlestick. The indicator is making its way to the positive territory as well.

JSL is bullish above the level of 90 with a target near 132.

National Aluminum is one stock that has been hinting at a strong move in the metal sector for quite some time. While every sector has leading and lagging stocks, Nationalum is the lagging name in this sector. When lagging names start displaying strength, you know there's something brewing there.

What we did notice however is price breaking out above crucial levels of resistances since early this year. With the indicator alluding to the same strength, we are looking at the next leg of the rally taking the price further towards 97. The risk management level to track would be 70.

SAIL is another name that has been making good strides since late 2020 and has continued to display that strength. The price has broken out of a big twelve-year base with strong support from the indicator as well.

SAIL is bullish above the risk management level of 124 with a target near 188.

MOIL is up next and is another name that comes under the 'big-base breakouts'. The price has moved past a three-year resistance and has absorbed all the overhead supply at 162. With this move the price looks ready for a move towards 209.

The risk management level to track would be 162.

Hind Copper came up in our Trade of the Week post and is now moving past its interim resistance at 154. We are bullish above the level of 154 with a target near 262.

Metals continue to outperform the rest of the market and this post highlights the levels to track going forward as the index marches on.

Which stock are you tracking? Share your thoughts with us. We'd be happy to hear from you.

Allstarcharts Team

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