3SOF

GNA is developing a bullish trend, doing a consistent technical move.

Some news out recently:
- Gerdau Ameristeel purchases Callaway Building Products
- Gerdau AmeriSteel upgraded by CIBC Wrld Mkts

The only obstacle so far is the $9.00 resistance, where we have already watched 2 reactions. The volume continues to be strong, and so the upside «magnetic force», I think its only a matter of time until GNA trades above $9.00 (and that would be a great technical signal to improve its already bullish pattern).

On the downside, $8.20 is the first support, and we are going to use it as a Stop level (on close).
We'll HOLD GNA unless it is set to close bellow $8.20.

Best regards,

GNA just made a new all time high today, breaking out the $9.00 short term resistance level. Volume was also very attractive, trading three times the average and reinforcing this bull trend a lot.

As for short term and after this new breakout we would expect continuation, the $10.50/$11.00 level would be an easy short term target, but it's always difficult to analyse stocks with trends like GNA. So the trend is our friend, and we just don't send our friends away.
For downside, we'll consider the $9.00 ex-resistance as a new support level, but we'll continue holding GNA, with a $8.20 stop level (on close).

Best regards,

GNA was up again after yesterday's breakout.

We'll continue to hold GNA, with a $8.20 stop level (on close).

A normal correction on GNA today after the recent breakout, we expect that the $8.85/$9.00 level will act as a good support.

We'll be updating our stop level to $8.40, since it's based on an ascending trend line, and continue to hold GNA.

GNA seems to have a slight resistance to cross the $10 level (it's also a psychological barrier), the stock is riding a powerful bull trend, and it has a lot more potential for sure, but we need a breakout

The current trading range is approximately $9.00 to $9.80, where 9$ was the previous resistance level, we expect that an upside breakout could lead GNA to $10.60 very quickly, and that's what we are waiting for. Although the downside break could change the overall technical overview for short term, so we are updating our stop level:
Hold GNA with a stop @ $8.80

Best regards !

This is just a routine stop update due to the ascending support.

The new plan is:
Hold GNA with a stop @ $8.90

From one of our last updates:

Quote from: Ramsburg on April 04, 2006, 12:38:00 AM
The current trading range is approximately $9.00 to $9.80, where 9$ was the previous resistance level, we expect that an upside breakout could lead GNA to $10.60 very quickly, and that's what we are waiting for(...)

Yesterday's high of the day was $10.60, achieved only 2 sessions after the range's breakout. The reason why we didn't set any sell order was because we think the potential can be much higher than a simple technical range projection.

The recent main trend on GNA has been supported by an ascending line (blue on the chart), and all we are doing is to ride that trend, we have no plans to catch the high of this trend, so we'll just keep following it for now.
GNA will probably start a new short term trading range, like it did it before, only after that we can make new projections.

Our new plan is just an upgraded stop level:
Hold GNA with a stop @ $9.35

Best regards !

The new trading range is not evident yet (we may still have some potential on the upside on this stage), GNA is doing a great job here and we'll continue to do our job too, which is to ride this trend.

This update is just a stop upgrade, the new plan is:
Hold GNA with a stop @ $9.65

Best regards !

We almost got our stop price filled last Thursday while GNA tested the ascending support level and bottom of its recent trading range. Friday was a good recovering session, bringing GNA next to its recent highs.

Some News developments:
- Gerdau's Sweetened Sheffield Bid Gets OK
- Gerdau Ameristeel Corporation - Q1 Earnings Announcement Webcast - May 3, 2006


GNA is trading a powerful technical pattern, we'll keep our plan for now:
Hold GNA with a stop @ $9.65

Best regards,

Ok, we decided not to hold GNA through earnings and to lock down this profit.
We may get back into GNA later.

The plan:
Sell GNA today at or near the open.

Best regards !

Earnings are out already:

"Gerdau Ameristeel first-quarter profit rises
Wed May 3, 2006 8:33 AM ET
NEW YORK, May 3 (Reuters) - Steel producer Gerdau Ameristeel Corp. (GNA.N: Quote, Profile, Research) (GNA.TO: Quote, Profile, Research) said on Wednesday that first-quarter profit rose as shipments and mill prices increased and scrap costs fell.

Net earnings were $87.4 million, or 29 cents per share, compared with $78.6 million, or 26 cents a share, a year earlier, the Tampa, Florida-based company said."