BUZZ-Steel ETF: Has built a solid rectangle on the charts

** VanEck Vectors Steel ETF on track for 4th straight weekly decline, its worst run since late 2015, while still trapped in a rectangular pattern this year

** However, with momentum yet to reach oversold, SLX at risk for test of the bottom of the range

** SLX up 8.3 pct YTD, underperforming the broader S&P 500 up 15.3 pct

** Concerns over slackening Chinese demand, world's top consumer of the metal, remain a millstone

** Index of spot iron ore prices delivered to China, Spot Iron Ore Idx 62% Fe Fines, down >20 pct YTD (Thomson Reuters (Dusseldorf: TOC.DU - news) Datastream)

** Indeed, post-Nov 2016 U.S. election surge in cyclical shares quickly waned; growth's dominance over value has extended

** ETF rangy: double-top with $45.39/$45.21 Feb/Oct (Shenzhen: 000069.SZ - news) highs, and shorter-term double-bottom May/Jun with $35.03/$35.06 lows. Chart: http://reut.rs/2zKGYYv

** But weekly RSI (42.44) plunging, substantial room to fall to reach sub-20.00 deeply oversold levels hit late-2014 to early-2016; SLX breaking $39.22 can further tilt risks to downside

** Pattern projection on $35.03 break can call for much deeper decline to $25 area

** SLX will need to thrust above $45.39 to suggest advance off early 2016 low resuming in earnest; target $55 area

** Top U.S.-based ETF holdings by pct weight end-Sept include: U.S. Steel , Steel Dynamics (Frankfurt: 903772 - news) , and Nucor