Give Ternium (TX) A Chance
Posted on: Feb 6th, 2009 | By Charles Delvalle | Filed under Chart of the Day
Over the past year commodities have been beat down harder then Nazi Max Schmeling’s 1938 beating by the hand of African American Joe Louis. But it looks like some stocks are showing signs of bottoming out.
And this small steel maker could give you hefty returns in no time.
Just take a look at this chart of Ternium SA (NYSE:TX) to see what I mean…
There’s no denying that shares were slammed. But if you’ll notice, since December Ternium has entered into a bullish trading channel. This pattern has held up quite nicely and looks set to repeat.
Making the odds of repetition stronger is the fact that its Slow Stochastic indicator (at the bottom) is showing TX as mostly oversold with the trend improving.
When you see the Slow Stochastic show this type of pattern while the stock price reacts to a major support point, it means buying isn’t such a bad idea.
With Obama’s massive stimulus spending planned and commodities as cheap as they are, don’t be shocked to see this companies shares pop up 15% in no time.
Charles Delvalle is a self-taught market-timing professional and value analyst who's followed and invested in the market for the past ten years. He uses a unique combination of technical and fundamental research to pinpoint rapid profit opportunities with stocks and options.
Charles is also a staunch contrarian and takes pride in finding undervalued sectors and discovering undervalued, cash-rich companies. He frequently mocks government stupidities and points out the "inaccuracies (or lies, take your pick) that government reporting frequently dispels as "truth". 
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