AK Steel Close to Resistance

Published on Tuesday, 27 July 2010 05:24 Written by Danny Miller

New York, July 27th (TradersHuddle.com) - Shares of AK Steel Holding Corporation (NYSE:AKS) are trading very close to calculated resistance at $15.55 with the current price action closing at just $15.20 placing the stock near levels that make it difficult to buy.

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 automotive industry customers. Key Statistics

AK Steel's current stock range is defined by current calculated support defined at $13.26 and by the resistance level at $15.55, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for AK Steel, as the stock is well above support, however, as the stock pulls back towards $13.26 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $15.55 then traders will get an opportunity to enter AK Steel stock by establishing a position as the stock moves to a higher range.