Some Steel Stocks Still Solid

Steel stocks stink right? AK Steel, $AKS, USX, $X, Arcelor Mittal, $MT, even the Russian Mechel Steel, $MTL and my hometown favorite Olympic Steel, $ZEUS (awesome ticker), have charts that have either been moving sideways for months or are biased to the downside. But dig a little deeper and there are two, Metals USA Holdings, $MUSA, and Universal Stainless & Alloy Products, $USAP, that still look rock solid. Take a look.

Metals USA Holdings, $MUSA

Metals USA Holdings, $MUSA, has been testing resistance at 14.50 from a series of higher lows. The Relative Strength Index (RSI) held in bullish territory on the last pullback and the Moving Average Convergence Divergence (MACD) indicator is improving toward the zero line after a shallow move negative. That large volume at price bar is keeping it at bay. A break higher sees a target of 17, the previous double top in April.

Universal Stainless & Alloy Products, $USAP

Universal Stainless & Alloy Products, $USAP, is similar but even better in some ways. Moving in an upward channel it has some room to the 46 upper rail and a RSI that is bullish and rising. The MACD also dipped briefly and is now moving back to flat. The move from 44.15 to 46 is not bad but if it can get over 46, above the channel, then there is no major resistance until the previous top at 52.

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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.

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