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This chart is a daily of NUE which is in the steel and iron industry. Along with commodities, steel stocks have taken a major beating in recent months. And it is a place to bottom fish for big reward opportunities currently in my opinion.
Notice that as price has moved lower the last couple weeks, the money flow index has made progressively higher peaks, indicating that the trend may be set to reverse. Now we are seeing a pop higher from a fibonacci support zone and a major, multi layered bullish divergence.
I believe this stock has good potential for continuation higher.
I have an order to buy an April 44 call option for 2.35 or less. It would take a mild 1% or so pullback for the order to fill, but given the very short term overbought nature of these materials stocks right now, I think it has a good chance to make that pullback, and that will also create a more favorable reward to risk scenario for the option.
Pete
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