Is AK Steel Closing in to Resistance?

Published on Thursday, 27 December 2012 06:36 Written by TradersHuddle Wire

New York, December 27th (TradersHuddle.com) - Shares of AK Steel Holding Corporation (NYSE:AKS) are trading very close to calculated resistance at $4.64. The stock ended the trading session at just $4.60, which is near levels that make it difficult to buy or start a position.

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.

AK Steel's stock range is defined by its calculated support defined at $4.21 and by the resistance level at $4.64; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for AK Steel. However, as the stock pulls back towards $4.21 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $4.64 then traders will get an opportunity to enter the stock as it moves to a higher range.