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TheStreet Open House

5 Commodities Setups to Play

Stocks in this article: RDS.BVALEAANSADR

BALTIMORE (Stockpickr) -- Stocks made big gains yesterday, the big NASDAQ Composite in particular making new multiyear highs as buyers charged into equities to start the week. But one corner of the market has quietly been outperforming the rest -- and no, it's not technology.

I'm talking about the "commodity stocks," basic materials sector names with outsized exposure to the commodity markets. Typically, commodity-centric names tend to have low correlations with the rest of the broad market, but not in 2014. Instead, materials names are just magnifying the S&P 500's gains this year.

So far, the S&P has managed to climb 7.19% higher since the start of the calendar year -- but the basic materials sector has basically done double, climbing 14.34% over that same stretch. Even better, there are still some big trading opportunities in materials right now.

To sniff out the best setups, we're turning to the charts for a technical look at five big commodity-driven names to trade this week...

Read More: Warren Buffett's Top 10 Dividend Stocks

For the unfamiliar, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution.

Without further ado, let's take a look at five technical setups worth trading now.

Read More: 5 Stocks Triggering Big Breakout Trades

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