BALTIMORE (Stockpickr) -- Commodities have taken a nosedive in 2014. Over the past year, everything from oil to steel to corn to gold has been tumbling -- and so have the stocks that pull those commodities out of the ground. But the bleed for investors who own commodity-centric stocks could be coming to an end this fall.
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It's not surprising that commodity producers have been feeling the hurt this year. As the spot prices of their wares drop, so too do their margins. In effect, that makes energy, mining and agriculture companies a sort of leveraged bet on the prices of the commodities they're exposed to. When commodity prices fall, they fall harder. (On the flip-side, commodity buyers such as airlines and food processing companies have been thriving on lower costs in recent quarters.)
But as we head closer to the end of the calendar year, more names are starting to show signs of strength. No, that doesn't mean that oil, ags and metals are headed straight up again for all of 2015, but it does mean that owning this oversold corner of the market in the intermediate term is starting to look like a very attractive trade.
Today, we're taking a technical look at five breakout buys in commodity-centric stocks, with a focus on the energy sector.
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.
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