Normally I don't do sectoral analysis but this one demands our attention, fundamentals & price action are both looking good for the metal index. As mentioned in my detailed analysis of tata steel, even the metal index did a possible bear trap. Fundamental wise this sector is the most hottest for the coming weeks/months as China opens up & the COVID wave peaks over there the demand for metals will start increasing, also with the upcoming budget focus will again be on Infra therefore metals will be in high demand. Price action wise this sector has shown the most upside momentum with prices rising ferociously(even i got stopped out in my tata steel short). It looks like prices are headed towards the support of the range(1H chart) that was formed before the severe fall in the broader markets. There is a confluence over there the range support & the 2nd BOS which is required to establish an uptrend, what the prices do there is anbody's guess but it is one sector to keep a watch on as it will give fierce moves wither side.
Comment:
The index gave the 2nd BOS & is now testing it again as support.
