Stoke the Furnace: Steel is Heating Up
- Posted by Greg Harmon
- on August 31st, 2011
Steel stocks have been hit pretty hard since the beginning of August with some dropping over 50% before catching a minor bounce. But many are showing signs of life now. Here are four that are worth following as they are the verge of big runs.
AKSteel Holding, $AKS
AKSteel Holding, $AKS, was one of the worst dropping over 50% before consolidating. It came close to testing resistance at 9.57 Wednesday but fell back with a long bearish candle. The Relative Strength Index (RSI) is rolling a bit after moving strongly off the bottom and the Moving Average Convergence Divergence (MACD) indicator is starting t level after a move up. not good enough to just jump in but if it can break over 9.57 it looks good for a long trade with 10.50 and then 12 as resistance higher.
United States Steel, $X
United States Steel, $X, also lost more than 50% of its market cap before bouncing last week. Now the MACD is positive and increasing and the RSI has come back near the mid line but is rounding off. After printing a somewhat bearish solid black candle Wednesday the good news is that it did move higher. If it can get over the 32.10 resistance it has resistance next at 33.50 followed by 37 and then 40. Also not one to jump into but definitely one to put on the watch list.
Mechel Steel Group, $MTL
Mechel Steel Group, $MTL, is in the 50% pullback camp as well dropping from over 34 to 17 before finding support. Unlike the first two names though it looks good right now. It has a rising RSI and a MACD that is increasing. It printed a near bullish Marubozu candle Wednesday after moving higher Tuesday. It has resistance next at 20 and if it can get through that level it sees resistance again higher at 21 followed by 22.20 and then 23.50.
Olympic Steel, $ZEUS
Olympic Steel, $ZEUS, had a similarly bad Spring and Summer before finding support and rising last week. It has a steadily increasing MACD and a RSI that is trending higher. It printed a doji star near resistance at 21.50 Wednesday and if it can resolve higher over the resistance then it has resistance next at an area between 22 and 22.50 followed by 25. Another to move up near the top of the watch list.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Macro Week in Review/Preview April 17, 2015
- Dragonfly Capital Views Performance through April 2015 Expiry
- Unlocked: Premium Earnings Trades for Morgan Stanley and Hasbro
- Premium Earnings 4-17-15
- Revisiting the oil to bond ratio (spoiler: its not too late)
- Unlocked: Schlumberger and General Electric Earnings Trades
- Release the brakes & hit the gas in Wabtec
- Premium Earnings 4-16-15
- About that US Dollar strength….
- Unlocked: Netflix and Goldman Sachs Earnings Trades