(Click on image to enlarge)

Over the past several months, we’ve shared a lot of commodities charts and highlighted the economic theme of inflation.

Well, inflation is here. Now it’s a matter of figuring out if it will get worse.

One commodity that is an inflationary indicator is Steel. We highlighted its bullish formation several times, including our latest update on the Steel ETF (SLX) from early March.

Well, SLX is inching even closer to a major price breakout. As you can see on today’s chart, this Steel chart from Marketsmith is attempting a breakout at (1). And this comes after a near-perfect breakout and retest of the green line.

If the price continues higher, it may be a warning sign that inflation is here to stay. Stay tuned!