Is AK Steel Waiting for a Break Out?
Published on Thursday, 05 July 2012 08:04 Written by TradersHuddle Wire
New York, July 5th (TradersHuddle.com) - AK Steel Holding Corporation (NYSE:AKS) ended the trading session at $6.05, near its 50 day moving average set at $6.23. AK Steel's price action placed the stock below this important level, which makes it difficult to be bought, as the stock will certainly face resistance as it approaches its 50 day moving average.
AK Steel Holding Corporation (NYSE:AKS), through its subsidiaries, produces flat-rolled carbon, stainless, and electrical steels, and tubular products primarily in the United States and internationally. The Company produces coated, cold rolled, and hot rolled carbon steel for the automotive, appliance, construction, and manufacturing markets. AK Steel also cold rolls and aluminum coats stainless steel for customers in the automotive industry.
The latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $5.05 and resistance at $6.49. These levels will be closely monitored, as they provide great insight into the latest price dynamics.
If traders want to establish a position in AK Steel, given the resistance expected as the stock approaches its 50 day moving average, a trade might materialize as the stock manages to break this important technical level. After the breakout, the 50 day moving average could be used as support going forward. However, until the break materializes, buying the stock is basically a gamble with 50-50 chance.
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