Today the leading commodity stocks are surging again. The move higher in these stocks began yesterday after the Chinese Government made a statement that they would begin to loosen credit for the Chinese housing market. Prior to this move the Chinese government had stated that they would try and tighten lending to prevent a housing bubble.
Cliffs Natural Resources Inc (NYSE:CLF) surged higher yesterday and is continuing it's rally today by climbing by more than 1.61 to $51.99. This stock has just pierced it's 50 moving average which is some short term resistance. This stock does have some possible further upside in the cards if it can clear this current area. The next important resistance level will be around the $56.50 area.
United States Steel Corp (NYSE:X) is another leading commodity stock that is surging again today. Today the stock is trading higher by 1.66 to $45.90. U.S. Steel Corp will have strong daily resistance around the $45.00 - $45.50 area.
Freeport McMoRan Copper & Gold Inc (NYSE:FCX) is trading higher today by 2.10 to 66.41. This stock had very strong resistance around the $68.00 area and has already reversed after reaching that resistance point today. This stock will still have some short term daily chart support around the $65.00 area should it pullback a bit further.
The leading commodity names must be followed closely by most traders and investors. When the commodity stocks trade higher it is a sign of global economic growth. These stocks have had a very sharp move higher since yesterday and may need to pullback already as many of these stocks are at or near important resistance.
Nicholas Santiago
Chief Market Strategist
www.InTheMoneyStocks.com
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