Trading Idea - Key levels for AK Steel

Published on Wednesday, 25 January 2012 08:00 Written by Christian Paolinetti

New York, January 25th (TradersHuddle.com) - Shares of AK Steel Holding Corporation (NYSE:AKS) finished near calculated support at $8.93.

Current price action with, the Ohio based steel company closed at $9.29 has left shares at a level that needs to be monitored closely by traders wanting to start or add into a position in the stock.

AK Steel's current stock range is defined by current calculated support defined at $8.93 and by the resistance level at $9.58.

The area defined as calculated support, is where we expect for buyers to likely materialize, which could provide a lift to the shares. However, this area if breached will signal participants that the stock failed to entice buyers to step in an support the stock.

Traders wanting to establish a position should pay close attention to AK Steel's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $9.58 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.