Profile: Allegheny Technologies Incorporated engages in the production and sale of a range of specialty metals. The company operates in three segments: High Performance Metals, Flat Rolled Products, and Engineered Products. The High Performance Metals segment produces, converts, and distributes a range of alloys, including nickel and cobalt-based alloys, and superalloys; titanium and titanium-based alloys; exotic alloys, such as zirconium, hafnium, niobium, nickel-titanium, and their related alloys; and other specialty metals, such as ingot, billet, bar, rod, wire, and seamless tube.
Website: http://www.alleghenytechnologies.com
ATI showed up on our filters a few sessions ago upon breakout of a trading range; yesterday while searching for Titanium related companies with nice technical patterns, ATI came up again on our results... On top of that, our friend David Randolph mentioned it yesterday on a quick chat we had about picks under the radar ;)
Trading Idea:
ATI is a solid company with strong and improving numbers, a major player on its sector; furthermore we are expecting a build up on Titanium related companies for the short term. Enough said we believe we have a low risk opportunity here with an easy setup to play with a nice risk/reward ratio.
ATI had a tough correction during May and early June, last Thursday it had a breakout filling a gap and holding this price levels for now. It is starting to build some momentum, and there is already a first bullish divergence on the DMI indicator which indicates a reversal to the upside. There's a chance of retesting the breakout level ($67/68), but there is already a first technical target in play: $80.20 (the target of Thursday's breakout)
If this scenario comes to happen, we expect ATI to test its highs during this summer, so we'll buy it today.
Trading Plan:
Buy ATI today at or near the open, setting a stop level @ $65 for this trade
Regards,
Count me in! I rode ATI up from $44 and sold at $77 once this year, will be happy to make some more money on it! ;D :D
Update:
Yesterday, ATI came down with the all market, allowing us to get a better than expected entry price. The low of the day was $67.40, which was almost a perfect retest to the breakout level. ATI recovered the rest of the session creating a bullish outlook for the short term.
Trading Plan:
Hold ATI with a stop @ $65
Update:
ATI didn't hold the morning gains, coming back down for another retest on the ascending support, but even so closing positive. The plan will be the same for now:
Trading Plan:
Hold ATI with a stop @ $65
Regards,
From my EW count, ATI is having more down side ahead, if it couldn't hold ema50 at 65.50, the C is in the progress. STO, CCI, A/D are heading down too.
http://tinyurl.com/hzr2p
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quote author=Ramsburg link=topic=6175.msg66950#msg66950 date=1152238965]
Update:ATI didn't hold the morning gains, coming back down for another retest on the ascending support, but even so closing positive. The plan will be the same for now:
Trading Plan:Hold ATI with a stop @ $65Regards,
Quote
Update:
Friday wasn't a nice session for ATI; it was down below the recent breakout level, creating some technical danger to our position. We are keeping the trading plan with stop at $65; this should give the necessary room for ATI to decide its way with not much risk.
Trading Plan:
Hold ATI with a stop @ $65
Regards,
Position closed according to plan.