For investors seeking momentum, VanEck Steel ETF (SLX Quick QuoteSLX - Free Report) is probably on the radar now. The fund just hit a 52-week high and jumped 77.6% from its 52-week low price of $62.85 per share.

But are there more gains in store for this ETF? Let’s take a quick look at the fund and its near-term outlook to get a better sense of where it might head.   

SLX in Focus

This fund provides exposure to global companies with primary business operations in steel. The product charges 55 basis points (bps) in annual fees (See: All Materials ETFs here).

What Led to the Rise?

Building giant data centers requires an immense amount of structural steel, which, in turn, is boosting demand for this alloy and pushing up its price. This, along with tight supply chains, trade protectionism, and steady demand for steel in global manufacturing, must have led SLX to touch a new peak.

More Gains Ahead?

SLX may continue its strong performance in the near term, with a positive weighted alpha of 74.73 (as per Barchart.com), which suggests a further rally.