Is AK Steel Closing in to Support?

Published on Tuesday, 01 January 2013 06:20 Written by TradersHuddle Wire

New York, January 1st (TradersHuddle.com) - Shares of AK Steel Holding Corporation (NYSE:AKS) ended the trading session close to calculated support at $4.21, a level that will raise the attention of traders looking for an entry point.

AK Steel's stock range is defined by its calculated support defined at $4.21 and by the resistance level at $4.67. This range could be used as a reference by traders planning their next move. The area where buyer interest might materialize is defined as calculated support. Stocks trading near support might see upside if it can successfully hold the technical level. However, this area if breached will signal participants that the stock failed to entice buyers to step in to support it.

Traders wanting to establish a position should pay close attention to AK Steel's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $4.67 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.

Shares of AK Steel Holding Corporation closed at $4.30 in the prior trading session.

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.