TX Long
TX, Ternium S.A. Steel company. I believe a short term bounce is imminent given the strong balance sheet and income statement. On top this company pays good dividend, which would make it highly lucrative for longterm and income oriented investors. However, TX is not as liquid relative to other big mining companies, thus sharp price movements occur frequently. I feel selling is over done even though stock is still in the down trend channel. With upcoming qe and fiscas stimulus in China, demand for steel may pick up in near future. Furthermore, there is a widening divergence between steel and iron ore prices. I believe this divergence has to close in time, as iron ore is the primary component of steel.I believe there will be a strong support with +-5% but has a good upside.
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