Some Steel Stocks Still Solid
- Posted by Greg Harmon
- on April 16th, 2012
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.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)
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