With oil down now almost 20% from its peak, steel and coal stocks feeling the wrath of the bear, fertilizer stocks losing their momentum, and alternative energy stocks feeling pressure from the overall market it is has definitely been tough for Commodity and Alternative Energy stocks to stay in trend.
Using some simple technical analysis you can keep the bullish sentiment alive. Below are 11 reasons why going green and playing commodities isn’t worth writing off yet.
1. Powershares D B Commodities (DBC). This Exchange Traded Fund tracks the performance of the Deutsche bank liquid commodity index is a fairly good health gauge of commodities as a whole. The ETF is now 15% off its highs and $39 – $40 is strong support that may not be broken easily.
2. United States Steel Corp (X). Strong earnings have this stock making a gapping comeback surging today back above $160 a share. Between X and the next Steel stock investors may have a brighter long term future ahead yet. X stock closed today at $165.76.
3. A K Steel Holding Corp (AKS). Another strong earnings report for this Steel producer sent it surging back above its 200 day moving average today with strong accumulation volume. AKS stock closed today at $57.37.
4. Canadian Solar (CSIQ). Today’s accumulation move back above $30 may have CSIQ stock setup to make a push back towards the mid $30s. The first of three Alternative Energy / Green stocks featured on this list.
5. A-power Energy Generation (APWR). Strong support between $25 – $25 per share for this Chinese provider of distributed power generation systems. Also, today’s reversal to finish up on higher volume has this Green stock looking bullish heading into tomorrow. APWR stock closed today at $26.00.
6. First Solar (FSLR). A technical wedge in place with momentum pushing upwards puts bulls in charge of this play on solar energy. A move back above $290 would be a strong signal that this stock is back in business. FSLR stock closed today at $277.57.
7. C F Industries (CF). Investors can’t forget about fertilizer stocks as the group has held up very nicely considering the market conditions. CF is a leader in this group and looks to have found support once again around $140 a share. CF stock closed today at $152.68.
8. Mosaic (MOS). $120 support is very strong for this fertilizer stock and if CF can lead the way higher perhaps MOS is ready for a bullish push back up as well.
9. Alpha Natural Resources (ANR). Perhaps a double buttom has set in place for this high flying coal stock. Look for a break back above $100 to be a bullish sign short term.
10. Massey Energy Company (MEE). Another coal stock that has had a stellar run thus far this year. The stock has earnings due out this week and a strong report could send MEE stock gapping up overnight. MEE stock closed today at $72.74.
11. United States Oil Fund (USO). Last but not least is a look at oil which has now fallen close to 18% since its peak of $119.17 on July 11th. This commodity looks to have support around the $96 – $98 price range so it will be interesting to see if a rally is in store.