3SOF

Hourly chart of yesterday's Ascending Triangle breakout at 8.04-8.05.

This is acting well, technically.  Yesterday's low was 8.03, a penny below the Ascending Triangle breakout at 8.04-8.05,  so we've got a successful re-test of the breakout.

A little sideways-to-down would be okay here, but I'd like to see yesterday's 8.03 low hold.  My stop at the validated up trendline moves up today to 7.767.

Quote from: Melf Elf on January 04, 2006, 06:32:57 AM
AKS has two bullish upside targets IN PLAY.

Target #2: 8.52-8.55 is IN PLAY from the "mini" Ascending Triangle (horizontal blue line) breakout yesterday, January 3, above 8.04-8.05.  This pattern is a "fractal" (repeating pattern) of the original Ascending Triangle breakout.

Target #2 just MADE.

Quote from: Melf Elf on January 04, 2006, 10:49:04 AM
Bought AKS at 8.05, the top of yesterday's Ascending Triangle breakout.

Sold at 8.53.  Gain: 6%.

AKS pulled back on Friday after Target #2: 8.52-8.55   MADE.  The print high was 8.58, on Friday.

I'd like to re-enter my long position in the 8.13-8.20 area, if I can get it.  Target #1: 9.22 still is IN PLAY from the November 28 breakout.  That's right near validated resistance (thick red line).

Quote from: Melf Elf on January 04, 2006, 06:32:57 AM
AKS has two bullish upside targets IN PLAY.

Target #1; 9.22 is IN PLAY from the Ascending Triangle breakout on November 23.

AKS on fire this morning.  The 9.22 target MADE at 10:14AM.

AKS currently is BID 9.30...ASK 9.31, up 17%

AKS is #1 on the NYSE Percentage Gainers list today, up 28%.   

A K STEEL HLDG CORP (NYSE:AKS) Delayed quote data 

Pre-Market (RT-ECN): 11.20  0.84 (8.11%) .............


HEADLINES :
 
• Premarket Movers: Earnings and Mergers
Associated Press (Fri 9:28am)

• [$$] Dow Set to Make Another Run at 11,000
at RealMoney by TheStreet.com (Fri 7:44am)

• New Star Analyst Rankings for A K STEEL HLDG CORP
StarMine (Thu 10:21am)

• US CREDIT - AK Steel seen too tight without buyout
at Reuters (Wed, Jan 25)
 
• AK Steel increases stainless prices by around 3 pct
at Reuters (Wed, Jan 25)
 
• AK Steel Announces Price Increase for Stainless Steel Products
PR Newswire (Wed, Jan 25)
 
• AK Steel posts narrower loss, stock soars
Reuters (Tue, Jan 24)

• Steel Stocks Hot on Earnings Results
Associated Press (Tue, Jan 24)
 
• AK Steel Posts Narrower 4Q Loss
Associated Press (Tue, Jan 24)
 
• AK STEEL HOLDING CORP Files SEC form 8-K, Entry into Material Agreement
EDGAR Online (Tue, Jan 24) 

News Link: http://finance.yahoo.com/q/h?s=AKS

Moving on !
+6.37%........Volume @ 1,666,700

Steel stocks are on fire now due to higher steel demand/prices and record earnings. Many that have tanked to single digit lows such as AKS and WPSC are now making a remarkable recoveries. And those that have been fluctuating cyclically such as NUE are now making blue skies terrority and setting 52-week highs.

AKS, NUE, SIM, STLD, TONS, and WPSC are among some of the steel and iron stocks that should be strong buy. Compare the performances of top steel stocks here.

Too bad I some of the action in steel stocks but I'm pretty sure the boat has not completely left and there is still plenty of upside potential!

My favorite picks I'm currently eyeing are: AKS, NUE (as always), and WPSC.

Check out my personal follow ups and commentary on my newly redesigned stock blog: DINVESTOR.COM.

I joined you on this steel train, [D]Investor.  Also, I enjoy your website very much. 

I bought WPSC and AKS. 

The way I understand, WPSC is a turnaround candidate.  It's fallen from a high of around 45 to a recent low in the 8-9 range.  It built a base in that 8-9 range for about two months, and about a week ago it broke out on some of the biggest volume of the year.  The chart looked primed for a turnaround, with MACD converging to 0 and the nice base built.  It took out the 50 ma with ease on the first day of the breakout and it's currently trying to break the 200 ma.  It pierced through it today, but closed below. I see resistence at 18 and 20 and support in the 12.5 area. 

A Motley Fool columnist has been writing about WPSC, but he feels like he already missed the boat.  I'm holding a slight loss after buying yesterday morning (need to work on selecting better entry points), but I think WPSC has plenty of room to run.

Looks like AKS is facing some resistance right here at 12, but it shouldn't be too hard to get through given the steel sector remains hot.  The real battle was around 10. 

Let's make some cash, D...

WPSC on fire!  Currently up about a buck at 15.73.  It has made similar runs each of the last 2 days, but failed to hold on...lets see if this time it can hold the gains. 

200 ma at 15.14 might be causing some of the problems.

Nicely done AKS....

This one has done its job.

Technicals
Last Price Quote is:
7.55%above 13-day EMA
24.57%above 50-day EMA
RS Rating: 96 

Fundamentals
Key Data:
Market Cap (M): $1,475.20 
P/E Ratio: 8.10 
PEG Ratio: 0.76 
Next Earnings: 04/25/2006

Hi bjc,

My apologies that I did not see your post on 3SOF because I forgot to enable the "notify" option.

First, thank you for your kind comments!

And second, you're right, WPSC is a sweet turnaround candidate and it fine steel stock with lots of potential... Now it's much higher than $15.73... and I hope you're still holding on to it!

And here's an update on WPSC referring to my attached chart annotation:

The short term, 2-month chart shows WPSC currently in the process of hammering out an ascending triangle pattern while it's under consolidation. The ascending triangle is represented by the resistance level at about $19 followed by higher lows in the prevailing uptrend. Other indicators for consolidation include a stagnant RSI, stagnant MACD, and low volume relative to the breakout spike 2 months ago. Not to mention that WPSC also has a Golden Cross pending (GREAT SIGN!!!)

The Bottom Line: WPSC's chart and indicators strongly suggest that it'll be ready to breakout once the ascending triangle consolidation period is complete and the Golden Cross occurs. I anticipate a rise in volume prior to the breakout followed by a period of positive RSI and MACD values.

To Buy or Not to Buy: The swing trader should buy whenever the price is close to the uptrend line to maximize returns. If you did not pick up WPSC at today's intraday low, the drop today is still a good chance to load up.

Let's make some cash? "Some?" Heh. Heh. For sure.

My [2] cents.

- D

Traders who like AKS or want to jump on the steel train should check out WPSC as well. Personally, I believe it's less volatile and has a greater potential for higher returns. Regardless, both are on fire nevertheless!

Check out my analysis on both AKS and WPSC here and here.

Cheers!