I continue to favor buying the Energy/Commodity complex at current levels as the Weekly Support zones on many stocks in the group come into play. Below is a Weekly chart of the Dow Jones Coal Index (DJUSCL) explaining why I like this zone for buying. Note its correction is looking very oversold (weekly stochastics) after price action formed a Reversal bar last week off its 50-week sma off a 2-year uptrend line in the 50%-62% retracement zone. At the very least, I suspect prices will stabilize in this zone and would refrain from aggressively Shorting and start nibbling on the Long side for a bounce.
The OIH is holding at key support marked by the 62% retracement and a 2-year uptrend line around 175/180 area, and a similar case can be made for steel stocks!!!!
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