Sunday, 17 June 2012

AKS Bottom Formation

AK Steel (AKS) is at interesting levels from which it has been able to bounce off 3 times in the past 4 years. It first reached the $5 level in November 2008 after Lehman Brothers collapsed, then retested them in March 2009 before the Federal Reserve initiated its QE program, and then finally hit the same price during the Greek crisis and subsequent market collapse in August 2011. The company doesn’t seem to be making money recently, but the stock might be a good long-term hold at this levels. 

RSI has moved back above 30 from oversold levels.

Buy volume seems to offer support.

Depending on the risk and horizon an investor wants to accommodate the upside can potentially be 40% and more.

    AKS 5 Years Weekly Chart


    AKS 1 year daily chart


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