A Special Steel Company You Need to Watch
- Posted by Greg Harmon
- on July 10th, 2012
When you mention metals everyone’s first thought turns to USX, $X, or Arcelor Mittal, $MT. These big steel names maybe well known but they are not very attractive in a market where global growth is in question. Most have been basing for several weeks. There is one specialty steel maker though that traders and investors cannot get enough of, Metals USA Holdings, $MUSA. The daily chart below shows the move higher off of the base at 14 has taken it to resistance at 17 matching the
Metals USA Holdings, $MUSA, Daily
high from the double top in April. The air is thin above with little price history. The Relative Strength Index (RSI) is becoming overbought but the strength over the last few days may be an indication that it will correct over time. Looking out further to the weekly chart the picture is more bullish. The RSI is bullish and the Moving Average Convergence Divergence indicator (MACD) is positive and growing. From this perspective a move over 17 removes one of the only remaining impediments to the price moving towards its Inverse Head and Shoulders price objective of at least 23.85, about the same price objective of the current 3-box reversal Point and Figure chart. Only the first week of trading is left in the way. Still think that steel stocks look horrible?
Metals USA Holdings, $MUSA, Weekly
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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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